Annual European zinc premiums decline $10-15/t on demand woes

European zinc premiums for 2020 annual contracts have declined by as much as $15 per tonne compared with last year, multiple sources informed Fastmarkets, with market participants citing lackluster demand and persistent backwardations as a key headwind to negotiations.

For 2020 contracts, various deals have been concluded at premiums of $115-120 per tonne on a duty-paid fca basis via Rotterdam and Antwerp, while multiple participants dealing in the Italian market have confirmed deals at $160 per tonne for premiums on an fca basis. Negotiations for 2020 supplies began in October 2019 around the annual LME Week event, whereby buyers and sellers negotiate premium levels on top of the London Metal Exchange price. In 2019, annual contract terms were...

Published

Hassan Butt

January 17, 2020

16:53 GMT

London