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.