Spot appetite has diminished in China with closing of arbitrage window; SEA premiums drop
- Cif Shanghai premium dipped as demand diminished in line with arbitrage window’s close
- Southeast Asian premium dropped followed the trend two weeks ago in Taiwan as many Japanese and Indian cargoes were quoted there
- Lack of liquidity, demand keeps Europe premiums steady
A negative import arbitrage between London Metal Exchange and Shanghai Futures Exchange zinc prices has dampened buying appetite for imported zinc and the cif Shanghai zinc premium slipped accordingly this week.
Fastmarkets’ assessment of the zinc special high grade (SHG), min 99.995%, ingot premium, cif Shanghai
fell to $70-90 per tonne on Tuesday, compared with $80-90 per tonne a week earlier.
The corresponding zinc min 99.995% ingot premium, in-warehouse Shanghai
stood at $90-100 per tonne this Tuesday, unchanged over the past week.
The import loss over the...