SHANGHAI, Jul. 16 (SMM) - Premiums for super high-quality zinc in the US market quoted by the Platts were US 9¢/lbs, while premiums for #3 zinc alloy were US 19¢/mt.
Traders in the Midwest US markets quoted premiums between US 20-20.5¢/lb, but premiums of US 18-19¢/lb were also reported. Premiums for super high-quality zinc were between US 8.5-9¢/lb, but few deals were reported due to approaching summer break.
LME zinc inventories were closely watched by markets last week. If LME zinc inventories are not used for long-term financing and flow into markets instead, premiums will weaken.
Some traders, however, still believes that premiums will remain strong in the short term despite increasing market supply, and that market conditions may not change until April 2014 at the earliest. In this context, traders held premiums for super high-quality zinc firm between US 9-11¢/lb.