US zinc premiums hold firm on stronger demand, tighter availability
Dec 17, 2010 | 12:48 PM
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U.S. zinc premiums are holding firm around 5 cents per pound supported by stronger demand, rising costs and tighter availability.
Some consumers are frustrated at the firm spot premiums, which remain between 4.5 cents and 5.5 cents per pound, but producers point to rising demand and the lack of availability despite the high stocks in London Metal Exchange-bonded warehouses as justification for that level.
"It's everything from energy to transportation costs. There's not a lot we can do," said a buyer. "A lot of it is locked up in warehouse deals."
"You'd expect (demand to recover) after 2008 when demand collapsed. You'd expect to see additional demand and companies are looking for volume," said a zinc alloy producer, who is covered for metal for now.....
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