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...