Zinc premiums remain weak amid poor demand

Dec 18, 2008 | 06:35 AM | Mick Bowen

NEW YORK — Zinc premiums in the United States remain weak, hovering around 3 to 4 cents a pound above the London Metal Exchange price for spot sales, sources said.

Special high-grade (SHG) zinc premiums slipped to between 3 and 3.5 cents a pound over the summer as producers looked of get rid of excess material and demand declined due to lower demand from the housing and automotive sectors (AMM, Jun. 5).

Despite the major shift in sentiment in the six months since then, traders, producers and buyers are still singing the same tune, although they are unsure how the market will develop.

"It's still slow," a U.S. trader said. "U.S. demand is down and buyers are nervous about next year. They're not locking up contracts."....

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