GLOBAL ZINC & LEAD WRAP: US zinc premium widens up on steel mills vol cut; lead premiums down in SE Asia, India [CORRECTED]

Zinc premiums in the United States widened upward in the week to Tuesday August 20 despite dampened consumption from steel mills, while lead premiums drop in India and Southeast Asia, unaffected by Nystar Port Pirie outage.

  • US zinc premium widens upward, pushed higher by smaller spot tonnages traded at higher levels
  • Southeast Asia lead premiums drop despite increased spot demand amid Nyrstar Port Pirie outage
  • European, Shanghai zinc premiums flat on low spot demand, illiquidity
US zinc premium widens upward despite steel mills cutting volumes
The premium for special high grade (SHG) zinc ingots widened on Tuesday August 20, with some market participants consistently reporting small-volume transactions concluded at the higher end of the range.
Fastmarkets assessed the zinc SHG, min 99.995% ingot premium, ddp Midwest US at $0.08-0.095 per lb on August 20, widening upward from its previous range of $0.08-0.09 per lb the week before.

Low LME stocks and the zinc supply deficit in the US also supported the zinc premium. LME zinc stocks have been on a steady downtrend since mid-May - falling by 31.9% to 71,775...


Anna Xu

Julian Luk

Karen Ng

Amy Hinton

Rijuta Dey Bera

August 21, 2019

16:25 GMT

London, New York, Shanghai