ASIA ZINC SNAPSHOT: Premium up amid Chinese production cuts

Key data from December 3 pricing session in Aisa.

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Key data from December 3 pricing session in Aisa. 

Singapore in-warehouse

Premium November 26

Premium Dec 3

Change to midpoint of range

Midpoint % change

$55-95

$70-130

+25

+33%


Johor in-warehouse

Premium August 28

Premium Dec 3

Change to midpoint of range

Midpoint % change

$55-95

$70-130

+25

+33%


Key drivers
- China’s top ten zinc producers cut output by 500,000 tonnes going into 2016.
- Suppliers are reluctant to sell.

Key quotes
“The zinc premium is strong, and offers by producers are reaching $130-140 per tonne cif Asia.” - Trader
“Deals are being closed at $70-130 per tonne, but the market is slow.”  -
Trader
"The zinc market is mixed: the market is sluggish, but the zinc premium is rising with suppliers reluctant to sell." -
Trader
“One order to Taiwan was concluded at $150 per tonne for 125 tonnes of the cargo, I heard.” -
Trader

Anna Xu
anna.xu@metalbulletinasia.com

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