GLOBAL ZINC & LEAD WRAP: Premiums down in Europe in looser market; US, Shanghai hold

Zinc and lead premiums were mostly unchanged across the globe in the week to Tuesday January 12 despite demand remaining strong in the United States and an open zinc arbitrage in Shanghai, while European premiums were under pressure amid more balanced supply and demand fundamentals.

  • Northern Europe premiums dip after December tightness dissipates 
  • Window for arbitrage in Shanghai fails to move the zinc premium 
  • US premiums steady despite strong spot demand 
  • Southeast Asia premiums rise on domestic demand pick-up
Northern European premium decreases with market picking up
The top end of the Northern European zinc premiums decreased by $10 this week, with market sources reporting that the December market tightness has dissipated and trading levels have picked up, allowing participants to negotiate lower prices.
Fastmarkets assessed the zinc SHG min 99.995% ingot premium, dp fca Antwerp at $95-105 per tonne on Tuesday, the first change since December 8.
Similarly, Fastmarkets’ assessment of the zinc SHG min 99.995% ingot premium, dp fca Rotterdam was at $95-105 per tonne.

"There was some tightness in the market in December but it's beginning to settle now, so we see prices such as...

Published

Julian Luk

Karen Ng

Rijuta Dey Bera

Ana de Liz

January 13, 2021

13:00 GMT

London, New York, Hong Kong, Singapore