NEW YORK Zinc alloy
producers have forecast higher spot prices for 2013 due to
higher contract premiums for special-high-grade (SHG) zinc,
with the contract season largely drawing to a close.
One alloy producer told
AMM that his company would look at moving alloy prices
up by a penny going into next year. SHG contract premiums have
been reported in a range of 7.5 to 8.5 cents by consumers and
amm.com, Nov. 14), at least a penny higher than
contract premiums for 2012.
A second producer agreed that
the No. 3 benchmark alloy would probably reach 20 cents per
pound shortly into the new year, with the current spot premium
steady at 17 to 19 cents per pound.
"Im not looking to sell
forward for next years spot market because well be
higher on the premiums," the first producer said.
Spot market activity has
decreased in recent weeks, which sources attributed to a
"Theres hardly anything
going on in the spot market," one trader said.
Meanwhile, SHG contract
negotiations continue for a few players, with one consumer
saying that he is currently being offered material in a range
of 7.5 to 8 cents per pound.
Sellers were citing higher
freight and import costs for 2013 in justifying the higher
premiums, he said.
Producers have previously said
that they also see the North American zinc market as being in a
The global refined zinc market
recorded a 157,000-tonne surplus in October, according to data
published Wednesday by the International Lead and Zinc Study
Group, Lisbon, Portugal.