LME WEEK 2021: European zinc producers' annual offers to double in 2022

Major European zinc producers intend to significantly raise the annual contractual premiums in 2022, citing higher production costs and strong demand, Fastmarkets has learned during LME Week 2021.

Offers were likely to be made close to or higher than $200 per tonne, nearly double the levels seen in 2021, which came in a range of $95-110 per tonne.
The offer levels were also higher than the current spot prices in Northern Europe. Fastmarkets assessed the zinc SHG, min 99.995% ingot premium, dp fca Rotterdam, at $160-180 per tonne on Tuesday October 12, with supply in the region still insufficient.
“We have an interesting fourth quarter [of the year] ahead of us,” one producer source said.

The spot market began to be strained around summer this year, when zinc buyers found themselves short of metal...

Published

Julian Luk

Ana de Liz

October 13, 2021

16:13 GMT

London