US zinc market eyes dipping stocks; premiums stable
- New Orleans LME warehouse stocks are at an all-time low but this failed to support the US zinc premium due to bad demand.
- High import loss leaves Chinese zinc market quiet.
- Europe market cautious of strong backwardation.
A steep fall in on-warrant zinc stocks in the London Metal Exchange-registered New Orleans warehouses has market participants wary, with some predicting an upward move of the special high grade (SHG) zinc ingots premium.
But the premium is yet to react. Fastmarkets assessed the zinc SHG, min 99.995% ingot ddp Midwest US premium
at $0.08-0.09 per lb on Tuesday November 12, stable since late August.
New Orleans warehouses hold 5,375 tonnes on-warrant stocks as of November 12, which is an “all-time low,” according to a trader.
The low inventory has not yet moved the zinc premium because spot...