US zinc premiums hold firm on stronger demand, tighter availability
Dec 17, 2010 | 12:48 PM
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.....
To access AMM's full content, please log in below. If you do not have an AMM account, we invite you to take a free trial or subscribe below.
Already a registered amm.com user?
Access to amm.com editorial content is granted only to paid subscribers and trialists. If you do not have an active account in your own name, please either subscribe or take a trial and you will have instant access to amm.com content. Sharing your login credentials with individuals who are not subscribers represents a violation of AMM copyright.
Every morning, every minute no matter how often you follow the markets, there's an AMM subscription to fit your needs.
Not sure if you are ready to invest in a subscription right now? Take a free, no-obligation trial. Start your free trial today.