NEW YORK Zinc demand is lower than it should be for the lead up to fall season, traders and alloyers told AMM.
Theres just apathy, a trader said to describe market conditions. Traditionally it shouldve picked up this week or even last week, with people buying through November...sometimes demand doesnt follow the script.
AMMs SHG delivered premium remained unchanged at 9 to 10 cents per pound with several traders reporting that they have seen no interest from zinc buyers for at least two weeks.
Unfortunately theres a lack of demand and I think theres plenty of supply, an alloy maker said. Unfortunately with (special high grade zinc) in warehouses, theres some mark up going on.
According to the latest London Metal Exchange data, 5,375 tonnes of zinc moved into LME-listed warehouses in New Orleans Aug.
Zinc stocks in US warehouses totaled 736,125 tonnes as of Aug. 28. Long queues to get material out of the warehouses continue to bolster SHG premiums. What would be normal is 5 cents per pound (for SHG) but its subject to the warehouses, a second alloyer said.
Zinc alloy premiums were mostly unchanged Aug. 29 with only No. 2 die casting alloy registering a change.
Premiums for No. 2, which contains between 2.6 percent and 3.3 percent copper, fell to a range of 23 to 25 cents per pound from 26 to 28 cents per pound previously due to lower copper prices, traders and alloyers said.
Comex copper prices for December, the most actively traded contract, dropped to $3.233 per pound from levels above $3.34 per pound a week previously.