GLOBAL ZINC & LEAD WRAP: US-Iran tensions yet to move Asian lead premiums

The new year began with a dramatic escalation in US-Iran political tensions, leading market participants to express increased risk aversion in trading lead from Iran - a major lead ingot producer, sources told Fastmarkets in the week to Tuesday January 7.

  • Potential disruption in Iranian lead supply is yet to be reflected in Indian and Southeast Asian premiums. 
  • Extended arb losses cap zinc trading interest in China. 
  • US premiums for zinc and lead remained flat in the first week of 2020 due to prevailing weak spot appetite in the New Year.

US-Iran tensions yet to hit supply, premiums
Lead premiums were flat week on week for both India and Southeast Asia due to minimal spot activity, while the potential disruption in Iranian supply that used to dominate these markets are yet to affect prices.
Fastmarkets assessed the lead 99.97% ingot premium, cif India at $60-75 per tonne on Tuesday. Some assessments came in around $60 per tonne while some duty-free units were reported around $120 per tonne.
The lead 99.97% ingot premium, cif Southeast Asia also remained flat week on week at $60-70 per tonne.



Anna Xu

Julian Luk

Rijuta Dey Bera

January 08, 2020

10:26 GMT

London, Shanghai, New York