Zinc traders eye LME stocks in New Orleans
Jul 07, 2014 | 03:16 PM
| Mark Burton
LONDON Physical zinc traders are looking to pick up warrants in New Orleans following the effective disappearance of the queue to withdraw metal from London Metal Exchange warehouses at the Louisiana port.
Following an 8,775-tonne cancellation last month, physical traders are again looking at obtaining New Orleans warrants through clearing and selling the metal into the physical market.
That no one has acted yet to obtain larger volumes partly reflects that nearby LME spreads and customs duties would eat into margins for anyone importing the material into the United States, while a recent softening in regional premiums (amm.com, June 27) has caused concern among those evaluating whether to add to their physical position, sources said.
Nevertheless, the attraction of picking up zero-premium metal in a fundamentally well-supported market makes it likely that more metal will be canceled in New Orleans in the coming weeks, trade sources said. ....
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.