NEW YORK Special-high-grade (SHG) zinc premiums for 2013 appear to have been settled mostly at between 7.5 and 8.5 cents per pound.
The majority of SHG contracts have been signed in this range, although there are some outliers.
"We did some SHG between 7 and 7.5 cents per pound," one alloy producer source said. "Everyone wants to push for higher prices, but if someone is a regular buyer and has good credit, theres room for negotiation."
"I know some people have been talking about deals at 7 cents, but I havent seen it," one trader said.
The majority of contract business for 2013 has now been concluded, he said. "Id say were close to 90 percent of (contracts) being done; its just a question of formalizing it."
One producer source told AMM that demand from consumers for next year appears to be better than it was for the first quarter of 2012. "Weve had a number of years in the past where first-quarter demand was way down because people have been tied into contract tonnage and then come out of the year long," he said. "Weve not seen any of that this year."
Meanwhile, AMMs spot SHG zinc premium is unchanged at 7.5 to 8.5 cents per pound, with prompt orders trading a few cents higher.
"If somebody needs a truckload overnight, theyre paying a pretty pennyabout 10 or 11 cents per poundbut theyre small orders, and not reflective of the market," the trader said.
Zinc alloy prices also are unchanged, with the benchmark No. 3 premium steady at 17 to 19 cents per pound.
"The recent spike in the LME hasnt really affected what were doing," the alloy producer said.
The LMEs three-month zinc contract closed Tuesdays official session at $1,993 per tonne (90.4 cents per pound), up 3.8 percent from $1,920 per tonne (87.1 cents per pound) on Nov. 13.