GLOBAL ZINC & LEAD WRAP: Premiums stable on LME contango, closed Chinese arbitrage

Global lead and zinc premiums were unchanged on Tuesday August 3 amid clashing upward and downward pressure, with the cash/three-month spread in contango on the London Metal Exchange, the arbitrage loss in China widening, and demand remaining healthy.

  • Premiums steady in Europe amid contango
  • US Midwest premiums stable; freight pressuring lead upward
  • Chinese premiums unchanged on thin trading amid widening arbitrage loss

Northern Europe premiums hold despite weaker summer period
Zinc special high-grade (SHG) ingots in Northern Europe held at the highest levels since February 2018 for the fifth running week on Tuesday.
Fastmarkets assessed the zinc SHG min 99.995% ingot premium, dp fca Antwerp and the zinc SHG min 99.995% ingot premium, dp fca Rotterdam at $120-140 per tonne on Tuesday, both stable since June 29.
One market source noted that “things are not too exciting, since we’re still in a holiday period,” and that he did not expect a change in premiums or market conditions in the coming weeks, noting that “zinc price levels are not helping to make things attractive, either.”

The LME three-month daily official price was at $3,047.50 per tonne...


Ana de Liz

Yiwen Ju

Yasemin Esmen

August 04, 2021

02:17 GMT

London, New York, Shanghai