Zinc annual contract premium offers for 2022 in Europe nearly triple amid tightness

Higher and higher premium offers have emerged for long-term contracts in the European zinc market for next year, while volumes are set to be limited for consumers too, sources have told Fastmarkets.

“I have been in the market for 25 years and I had never seen a situation like this,” one zinc galvanizer in Europe told Fastmarkets. 
Negotiations for long-terms contracts remain underway in Europe, where spot premiums have almost tripled since the start of the year because of producer shortages due to high energy costs and steady demand. 
Fastmarkets' assessment of the zinc SHG min 99.995% ingot premium, dp fca Antwerp was at $250-280 per tonne on November 30, close to triple January's figure of $95-105 per tonne. 
In Southern Europe, premiums have also jumped in recent weeks, with the zinc SHG min 99.995% ingot premium, ddp Italy last at $400-450 per tonne, up from $170-190 at the start of the year.  

The current tightness for zinc ingots in the market is likely to continue into at least the first quarter of next...


Ana de Liz

Callum Perry

December 02, 2021

11:50 GMT