GLOBAL ZINC & LEAD WRAP: Zinc premiums flat in China, US; Indian lead, zinc premiums up on LME price declines

Zinc premiums in China and the United States were unchanged this week, with Chinese spot activity heavily curtailed due to the extension of the Lunar New Year break until February 9 and supply chain disruptions arising from the outbreak of the novel coronavirus in the world’s largest metal consuming country.

  • The Chinese government has extended the Lunar New Year holiday to February 9 in major cities to contain the spread of the Wuhan coronavirus
  • Spot trade of zinc ingot in the United States is unaffected for now from the impact of viral outbreak
  • The London Metal Exchange zinc price has fallen by almost 11% since January 22
Delayed return in China leaves premiums unchanged
The zinc market in China is quiet, with the majority of market participants remaining at home in an effort to prevent the spread of the novel coronavirus.
The return date after the Lunar New Year break has been deferred until February 10 by local governments in many provinces of China, which leaves not only the zinc market, but the whole of China, quiet.

Around 20 provinces and cities in mainland China’s 32 regions, including the major zinc production hubs of Hunan, Yunnan and Guangxi, as well...

Published

Anna Xu

Julian Luk

Hassan Butt

Rijuta Dey Bera

February 05, 2020

13:58 GMT

New York, London, Shanghai