Shanghai zinc premium drops on import loss
The zinc premium in China fell in the week to November 23, with negative import terms continuing to stifle import interest in a static market.
"Outlook looks grim in northern China for zinc. Galvanizers in Tianjin have been informed to cut production to reduce pollution and pave the way for the Winter Olympics in Beijing," said a zinc smelter source.
The assessment of the zinc SHG min 99.995% ingot premium, in-whs cif Shanghai
was $70-80 per tonne on November 23, with the high end dropping from $70-90 per tonne one week before.
The zinc import arbitrage loss
was calculated at $206.13 per tonne on November 23, little improved from the loss of $225.28 per tonne one week earlier, on November 16.
A three-month outage of an Inner Mongolian zinc and lead smelter, Yunnan Chihong, announced the restart of its...