NEW YORK The premium on special-high-grade zinc narrowed as elevated London Metal Exchange zinc prices and muted market activity led to discounting, according to buyers and sellers.
AMMs special-high-grade zinc premium narrowed to 9 to 9.5 cents per pound June 26 from 8.75 to 10 cents June 12. The premium on the benchmark No. 3 and No. 7 zinc alloys remained steady at 19 to 20 cents per pound, while the premium on the No. 8 zinc-aluminum foundry alloy was unchanged at 22 to 24 cents.
The LMEs three-month zinc contract ended the official session June 26 at $2,186 per tonne, up 3.3 percent from $2,117 per tonne June 12. The contract lost a little ground June 27, closing at $2,182.50 per tonne.
"Theres been some markdowns on (special-high-grade zinc) simply because of a lack of buying activity," one alloy maker source said. "There hasnt been much spot business lately."
Higher LME prices sometimes causes sellers to give discounts on material, another alloy maker said. "Sales are pretty lackluster. The rising LME has crept up on consumers and people are unwilling to buy bright now."