Shanghai zinc premium softens amid higher import loss
- Low buying appetite widens import loss in Shanghai
- Stagnant demand, tight spreads soften Northern European premiums
- Automotive woes a concern for US zinc market
The widening loss for bringing refined zinc into China has deterred buying appetite and pressured the spot zinc premium down.
The arbitrage loss for importing refined zinc into China widened to $202.42 per tonne on October 15 from $108.93 one week ago.
“Major market participants of zinc and lead were gathering at Kunming city [Yunnan province of China] for one of the most important zinc and lead industry event in 2019 this week and few suppliers are offering [as a result],” a trader said. “But you can definitely get mainstream brands of zinc at around $70-80 per tonne, the question is low buying appetite from importers [has become] from widened import...