Special-high-grade zinc premiums remained steady this week,
although some market participants say the material has become
difficult to obtain.
Premiums continued to trade in a
range of 7.5 to 8.5 cents per pound, with consumers split on
which end of the range was seeing the most activity.
"Zinc has been hard to get. It
doesnt seem like anybody has any around right now. We
bought some today and had to pay 8.5 cents per pound for it,
and wed been getting it regularly at 8," one consumer
"We havent been paying
nearly that much on special high-grade," a second consumer
said, reporting transactions at 7.5 cents per pound. "I
dont think that price is reflective of current economic
activity. Id say its a little overcooked."
Two traders told AMM
that they hadnt done any special-high-grade zinc business
this week, with one claiming that he "didnt have any to
Large volumes of zinc remain
tied up in warehouse financing deals, with 768,075 tonnes
sitting in London Metal Exchange-listed stores in New Orleans
and 116,225 tonnes in Detroit on March 11.
"(The warehousing situation) is
probably not going to get any better anytime soon," he
The LMEs three-month zinc
price closed the official session at $2,001.50 per tonne (90.8
cents per pound) March 13, down from $2,080.50 (94.4 cents per
pound) Feb. 28.
The recent drop in LME pricing
has "given some people buying opportunities," one zinc alloy
"The LME took a nice dip at the
end of last week and start of this week, so a couple of folks
jumped in and bought for the quarter," he said. "It spurs
activity, which is nice."
Alloy premiums were also
unchanged, with No. 3 alloy continuing to trade in a range of
18 to 20 cents per pound.