Northern European zinc premiums rise on increased spot demand
- The LME cash/three-month zinc spread returned to backwardation after a short-lived contango.
- Northern European zinc premium rose on increased spot demand.
- Shanghai zinc market quietened by worsened import arbitrage.
- US zinc premium buoyed by stable demand.
Special high grade (SHG) zinc ingot premiums in Rotterdam and Antwerp rose on Tuesday due to reports of increased spot activity precipitated by rumored delivery delays and a more robust LME three-month zinc price.
The LME three-month zinc contract closed the official session at $2,463 per tonne on July 16, up by 3.8% from the year-to-date low of $2,372 per tonne seen on July 9; the galvanizing metal’s cash/three-month spread slipped back into a $3-per-tonne backwardation on July 16 after the cash and three-month prices traded at parity on July 10.
The northern Europe premiums rose...