Zinc Premiums Paid by Asian Steelmakers Likely to Persist

Bloomberg reported yesterday that rising Asian demand for zinc is likely to keep the premiums paid by the region’s steelmakers in place for the remainder of 2014.

As quoted in the market news:

Mitsui Mining & Smelting Co. has seen surcharges for recent spot deals near the levels in its long-term contracts, Osamu Saito, a general manager of the company’s business department, said in an interview. Those premiums for annual supplies rose as much as 70 percent year-on-year, compared with a 15 percent gain in 2013, the company said in February.

‘The current higher premiums in Asia will remain at least until the end of this year,’ Saito said in the interview yesterday at the company’s office in Tokyo. ‘Supplies in the region will continue to remain tighter’ as shipments form Japan decline because of strong demand at home, South Korea’s exports fall and China’s imports rise, he said.

Click here to read the full Bloomberg report.