NEW YORK Long queues at London Metal Exchange-listed warehouses have driven zinc delivery premiums up despite available supply, according to market sources.
AMMs delivered premiums for special-high-grade zinc widened to 8 to 10 cents per pound from 8 to 9 cents previously.
"Nine cents is the bottom, up to 10.5 cents," a zinc producer source said, noting that warehouse queues were making the metal difficult to retrieve.
"The way its slated you cant get to it until next year," said another trader, who added that delivery premiums could be as high as 11 cents per pound, depending on the customer.
Stocks in U.S. warehouses totaled 730,400 tonnes as of July 3, down 3.7 percent from 758,525 tonnes two weeks earlier.
Delivery premiums for zinc alloys remained flat, with the highest being No. 27 zinc alloy at 30 to 33 cents per pound.