GLOBAL ZINC & LEAD WRAP: Indian lead premium jumps to highest since July 2019; zinc premiums steady

A falling London Metal Exchange lead price boosted buying interest in India, bringing the primary lead ingot premium to a seven-month high, but a switch in the zinc price spread to contango failed to entice appetite for the galvanizing metal in the week to Tuesday February 11.

LME zinc stocks are up 45% week on week, flipping the cash/three-month spread into a contango.  There could be more zinc deliveries to LME sheds on sluggish demand amid the logistics lockdown in China.  Increased buying interest in primary lead in India boosted the premium week on week.  An unusually temperate winter hit lead demand in the United States, with fewer car batteries breaking down and needing replacement. Indian lead buying continues on LME price decline
Primary lead ingots have become more sought after in India due to falling commodity price, pushing up the premium this week.

The lead 99.99% ingot premium, cif India rose by $10 to $160-170 per tonne on Tuesday, the highest since July 2019.

Buyers were keen to take advantage of a lower price to purchase high purity lead. The London Metal Exchange three-month lead price has lost 6% since the start of the...

Published

Anna Xu

Julian Luk

Karen Ng

Amy Hinton

Rijuta Dey Bera

February 12, 2020

12:00 GMT

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