Shanghai buying interest deterred by high domestic stocks, slow demand
- Southeast Asia zinc premiums stable on thin spot demand
- Indian lead demand dampened as the subcontinent celebrates the spring festival of Holi
- Italy is under lockdown as the European country scrambles to contain the outbreak of the novel coronavirus (2019-nCoV)
- The spread of the virus in the United States has not affected logistics as yet
In China, increasing domestic stocks and restrained logistics have muted buying interest and capped premiums.
Domestic spot zinc inventories have risen by 180% since before China’s lunar new year break to 303,900 tonnes on March 9 from 108,900 tonnes on January 20.
Meanwhile, Shanghai Futures Exchange stocks have quadrupled to 162,402 tonnes on March 6, compared with 40,433 tonnes on January 17.
The resumption of zinc downstream industries after the virus outbreak are still ongoing and demand has not yet...