GLOBAL ZINC & LEAD WRAP: Tight zinc supply takes Rotterdam premium to 2008 high

In a mixed week for premiums, those for zinc in Asia fell on muted demand in the week to Tuesday October 26, European ones rose while those in the United States held on to historical highs on a supply shortage.

• High demand in the summer months in China dampens September and October spot buying.
• Most European producers are said to be sold out of material until the end of the year, increasing premiums for those who need spot units.
• US lead and zinc markets remain quiet with consumers preferring to draw material under their yearly contracts and postpone buying zinc in the spot market due to historically high premium.

Rotterdam premium at 13-year high
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 $190-220 per tonne on Tuesday, both up by $20-30 per tonne from $170-190 per tonne a week earlier.

The fca Antwerp premium is at its highest since at least 2017, when Fastmarkets started assessing it, while the fca Rotterdam one is at its highest since 2008.

The zinc market...


Ana de Liz

Yiwen Ju

Yasemin Esmen

October 27, 2021

10:20 GMT

New York, Shanghai, London