SHANGHAI Zinc premiums in
Asia have weakened ahead of the Chinese New Year holiday.
In Singapore, zinc premiums fell
to $100 to $120 per tonne last week from $120 to $130 the
previous week; in Johor, Malaysia, zinc premiums widened to a
range of $80 to $140 per tonne from $100 to $140; and in
Shanghai, the premiums weakened to $110 to $140 per tonne from
$125 to $140.
"More offers were seen in the
market in the past week from traders or brokers," one
Singapore-based trader said, noting that "people wanted to get
out" of the zinc market.
A lot of zinc is still locked up
in financing deals, tightening supply in Singapore, but some
metal still found its way to the spot market.
"The New Year is approaching and
the contango is narrowing. ... People are getting a bit anxious
to unload their metal now," another Singapore trader said.
"We also got some offers, maybe
because of the looming holiday," a third trader told
AMM sister publication Metal Bulletin.
Chinese markets will be closed from Feb. 9 to 15.
A version of
this article was first published by AMM sister publication