GLOBAL ZINC & LEAD WRAP: Price rebound, backwardation limit European zinc market activity; China VAT cut fails to attract buying

European zinc premiums were unchanged in the week to Tuesday April 2 with a widening backwardation muting buying interest, while in China, the lowering of the value-add tax did not boost the zinc premium there against market expectation.

European markets quiet amid a widening backwardation.  China’s zinc market slow with limited impact from the 3 percentage point VAT cut on April 1.  US lead and zinc participants report solid demand  Indian duty-unpaid zinc premium boosted by higher producer offer. Backwardation limits European zinc market activity European zinc market is inactive this week following the recent rebound in the London Metal Exchange outright price and a widening backwardation. The premium for zinc on a duty-paid, fca basis to Antwerp was unchanged at $100-115 per tonne on Tuesday, with the premium for Rotterdam following suit at $100-115 per tonne as well. “The LME price level is hurting our business. When it jumped to close to $3,000 per tonne, no client will be willing to buy on a forward basis,” a trader said. The LME three-month zinc price rose by 2.22% from a week ago to open at $2,900...

Published

Anna Xu

Dalton Barker

Julian Luk

April 03, 2019

12:30 GMT

Chicago, Shanghai, London