S&P Global Platts assessed the European duty-paid SHG zinc monthly premium at $125-$140/mt plus LME cash in-warehouse Rotterdam Wednesday, unchanged a month ago, as spot activity was subdued amid the summer slowdown and higher London Metal Exchange prices.
One trader said the zinc premium is currently trading around $130/mt plus LME cash FCA Rotterdam for prompt deliveries, but he had no deals to report.
"The premium might be a bit cheaper if you are a consumer," he said. "We wait for the end of August for demand to go up."
A second trader reported offering at $140/mt plus LME cash FCA Rotterdam, but said there was little activity in Europe.
"LME prices are high so it's difficult currently to sell metal," the second trader said. "We have to wait till October for demand to pick up, maybe in September as well."
The LME's official cash price settled at $3,010/mt Wednesday.
The three-month contract broke above $3,000/mt in morning trade for the first time since October 2007.
The arbitrage window between SHFE and LME prices opened again this week, which could see zinc metal being shipped to China, while market participants said onshore premiums had also risen. The second trader put premiums at $145/mt plus LME CIF Shanghai.
Zinc stocks in New Orleans warehouses have fallen further, down 6.7% month on month at 236,625 mt as of Wednesday. Net cancellations in New Orleans were slightly lower at 87,725 mt.
LEAD PREMIUMS UNCHANGED
Platts European lead monthly 99.985% premium assessment was flat on the month at $50-$70/mt plus LME cash in-warehouse Rotterdam Wednesday, as market conditions were unchanged.
"I cannot find the units I want," a trader said. "Numbers don't work for me; premiums are too low compared to costs."
"The euro/US dollar exchange rate might help improve the situation but nothing really will change," the trader said.
The LME's official cash price settled at $2,395/mt Wednesday.
