Taiwan zinc premium rises on freight costs; SEA in-whs zinc in demand
- Both London Metal Exchange zinc and lead spreads were in contango.
- LME's on-warrant lead stocks dropped by 5,125 tonnes from a week ago to 93,825 tonnes on Wednesday, while it was little changed in zinc.
- US lead demand remains tight while premium unchanged at multi-year high level
In Taiwan this week, spot market trading was relatively active compared with previous weeks. Fastmarkets assessed the zinc SHG 99.995% ingot premium, cif Taiwan
up $10 per tonne on a fortnightly basis to $120-130 per tonne on Tuesday April 20.
“High freight costs are the main cause for the rise in premiums, there is no material to be found below $120 per tonne now,” a Taiwanese trader said.
Meanwhile in Southeast Asia this week, trading in warehouses picked up a notch. Warehouse trading was active...