Zinc Premiums in Northern Europe Said to Rise on Italy Jump

Premiums for zinc in northern Europe rose in the past three weeks following a jump in Italian fees, according to four people who trade the metal.

The surcharge is about $145 a metric ton, based on the median of midpoints from the ranges given by the people, who asked not to be identified because they aren’t authorized to speak to the media. That compares with $137.50 as of May 10 and $120 by March 22. Premiums rose in northern Europe as some traders were shipping zinc from the region to southern Europe to take advantage of higher prices, the people said.

The fee is added to the price of metal for immediate delivery on the London Metal Exchange and is for special high-grade zinc loaded in Rotterdam. Premiums ranged from $135 to $150 a ton, according to the people, compared with $120 to $150 at the beginning of May, $105 to $130 at the end of March and $100 to $120 in early February.

The surcharge in Italy was cited at $210 to $230 a ton by one person in the Bloomberg survey and $220 to $230 by another. The premium for zinc delivered in the country jumped about $70 in the week ended May 17, rising above $220, Metal Bulletin reported. It cited limited availability from the main regional supplier of the metal used to rust-proof steel.

For northern Europe, one person gave a range of $140 to $145 a ton, while two quoted a range of $145 to $150 and one said $135. The traders also cited limited spot availability of the metal and increased demand from Asia.

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