The LME zinc contract's backwardated forward curve has led to lowball offers from merchants in Italy, while a declining lead price has prompted buyers to come into the market in Southeast Asia for lead in the week to Tuesday November 26.
Persistent backwardation pressures Italian zinc premium lower
- Italy zinc premium declines due to LME backwardation.
- Southeast Asia secondary lead premium up with scrap said to be in short supply
- US lead and zinc market stable despite supply disruptions
Fastmarkets assessed the zinc SHG min 99.995% ingot premium, ddp Italy
at $175-195 per tonne on Tuesday, marking the first dip in the premium assessment since July.
The zinc SHG min 99.995% ingot premium, dp Italy
held at $140-150 per tonne on Tuesday, unchanged week on week.
Market participants are reluctant to hold large stocks of physical zinc through what is a $25 per...