NEW YORK A
tight zinc supply has caused delivered premiums to inch higher,
market sources told AMM.
Delivered premiums for
special-high-grade zinc tightened to 9 to 10 cents per pound
Aug. 1 from 8 to 10 cents previously.
not very active in terms of buying," a zinc producer source
said. "There doesnt seem to be a lot of metal
Several trader and
producer sources claimed that a production disruption at one
company was causing the supply constraint, but AMM
could not confirm any issues among producers.
Stocks of zinc in
London Metal Exchange-registered warehouses in the United
States fell 2.7 percent to 766,725 tonnes by July 31 from
788,075 tonnes two weeks earlier, when 80,075 tonnes of metal
was delivered into New Orleans, according to the most recent
Although spot demand
is seasonally weak, there is a lot of contract business taking
place at premiums that are "at the high end of the range," the
zinc producer source said.
Spot zinc activity is
expected to ramp up by mid-September, market participants
"The economic data
coming out has been strong, and its reflected in the
dollar strength," a source at an alloy maker told AMM.
"Business is certainly better, but not as good as it could
Contrary to other
sources, he said delivered premiums for special-high-grade zinc
can be under 8 cents per pound. "Business is not enough to
drive the price of premium up, but its good enough to
keep it from going down," he added.
Zinc alloy delivered
premiums remain unchanged.