NEW YORK Free-market zinc
alloy premiums have risen by a penny, with alloy producers
citing increased freight costs and a perceived tightness of
special-high-grade (SHG) zinc.
The benchmark No. 3 and No. 7
alloys increased to a range of 18 to 20 cents per pound from 17
to 19 cents, while the No. 5 alloy moved to 20 to 22 cents from
19 to 21 cents.
No. 8 alloy rose to 21 to 23
cents per pound from 20 to 22 cents, while No. 12 alloy shifted
to 24 to 26 cents per pound from 23 to 25 cents.
Three-month zinc closed the
London Metal Exchanges official session at $1,995.50 per
tonne (90.5 cents per pound) Jan. 17.
Two alloy producers told
AMM that freight issuesparticularly increased
fuel costs and driver shortageshad forced them to push
"Freight is causing all the
issues," one producer said. "Its not any increase in base
Meanwhile, some SHG sellers
claimed that the material was currently in tight supply, a
factor also cited by one alloy producer as prompting a rise in
"Its becoming harder to
find SHG. There is less zinc available domestically," the
The spot SHG premium was steady
in a range of 7.5 to 8.5 cents per pound, although some sellers
said they hadnt done any business below 8 cents.
"The spot market has been really
quiet. Customers tied up a lot of their requirements under
contract because they were concerned about getting metal," one
"It definitely has picked up in
the last week. After Jan. 7, we started to see customers
wanting to get metal on the road. Thats probably people
coming back from vacation and wanting to get their ducks in a
Meanwhile, LME stock data
indicates significant SHG tonnage being delivered in and out of
the New Orleans warehouse. At least 2,500 tonnes of SHG have
been delivered out of New Orleans each day for nearly a