Several zinc alloy premiums moved higher June 20 as supply of
special-high-grade (SHG) material remains tight.
delivered premium for No. 2 zinc alloy increased to between 26
and 28 cents per pound from 25 to 27 cents previously, the
premium for No. 5 zinc alloy rose slightly to between 21 and 23
cents per pound from 20 to 22.5 cents previously and No. 27
alloy premium increased to between 30 and 33 cents per pound
from 28 to 31 cents previously.
premiums, meanwhile, were unchanged at 8 to 9 cents per pound,
though some market participants reported rumors of metal
trading as high as 10 cents per pound over the London Metal
Exchange zinc price.
Zinc alloyers forecast
premiums to rise further in the latter part of the year due to
the supply constraints.
Suppliers "are talking
about it going up into next year," one alloy maker said.
"Its very bullish. Zinc stocks have declined."
Global zinc stocks in
LME-listed warehouses decreased to 1,071,425 tonnes June 20,
down from 1,110,150 tonnes June 6.
Stock in U.S.
warehouses totaled 758,525 tonnes June 19, according to the
most recent available data from the exchange.
Cash zinc prices on the LME rose slightly to $1,809 per
tonne (82 cents per pound) on June 21 from $1,795 per tonne (81
cents per pound) on June 20.