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MATERIAL
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LOCATION
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PREMIUMS IN USD/TONNE
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NOTES
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Copper A
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Singapore
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5-15
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33% of stocks; LME stocks up 7,750t. Prices last at $4,908; Cash-3s last around $19 contango caused by the recent massive delivery to LME-sheds, more copper expected to flow into LME warehouses
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South Korea
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5-15
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23% of stocks; LME stocks up 17,325t. More cargos came from China.
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CIF Korea
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50-60
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Trading volume still thin;consumers prefer off-grade or unregistered brands; off-grade prices vary depending on purities; Last PPS tender awarded at $52 for 1,500t Korean-origin metals
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Malaysia
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5-15
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7% of stocks; stocks flat, mainly of Zambian/Indian origin
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Rotterdam
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25-35
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2% of stocks; LME stocks flat, less material available; premiums for warrants higher; strong interest for non-LME brands + off-grade copper continues
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CIF Rotterdam
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50-55
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Market quiet, enough supply of off-warrant material, weaker demand in Europe at the start of summer holiday; off-grade prices vary depending on brand/purity; more scrap available due to rising prices
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Vlissingen
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15-25
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LME stocks flat, just 75t left
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Antwerp
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15-25
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1% of stocks, stocks down 1,050t
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Germany
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95-105 delivered
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No LME stocks; strong demand from automotive sector, some factories plan to close for summer break
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Bilbao
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10-20
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LME stocks flat (only 25t); Spain CIF heard around 40-50
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Italy
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15-25
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750 tonnes of LME stocks
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CIF Italy
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55-65
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Business quiet overall, a temporary tightness seen caused by some delayed shipments from Chile, factories restock before summer holiday in Aug
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US warrants
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0-15
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19% of stocks, stocks down 950t
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US Midwest
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5.75-6.25 cents/lb dlvd
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Premium slips as scrap tightness eases and spot business slows due to the summer.
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Shanghai
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45-55 CIF (SX-EW 45-50, ER 50-55)
45-55 bonded (SX-EW 45-50, ER 50-55)
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Premiums stable at the low level for the fourth straight week - closed physical arbitrage window, weak domestic demand
Floods in the south of China failed to underpin premiums as disruptions appeared small for the time being; some expect pick-up on the consumption from post-flood reconstructions
Recent massive delivery to LME-sheds by trading houses, Chinese smelters and metals hedge funds
Bonded stocks up 15kt to 625,000-655,000 tonnes in end-June from a month earlier, a small increase due to stock movements into LME warehouse sheds and short arb opportunities in early June.
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CIF Japan
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50-60 (ER only)
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No LME stocks, no imports
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CIF Taiwan
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55-60
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11% of LME stocks, stocks flat, demand still weak and market quiet
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2016 contracts
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Aurubis and Codelco cut premium in Europe to 92, deals heard done either side of benchmark. Codelco cut premiums to 98 in China, 92 in Taiwan/Korea/Japan. PPC at 105 in China/Taiwan, talk of deals below 90.Traders offer discounts of 10-20 to benchmarks in China/Taiwan. US Midwest booked at 5-5.5 c/lb; Codelco set to agree to 2.5-3 c/lb CIF Panama City.
2015 recap - Europe: Aurubis at 110, Codelco at 112. Asia: PPC 115; Codelco 133 in China, 115 in Korea/Taiwan/Japan, 127-135 in Vietnam/Malaysia. US Codelco 4 cents/lb CIF Panama. Less LTC booked despite discounts to benchmark offered.
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Aluminium
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Singapore
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65-75 off-wt
40-60 on-wt
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18% of stocks; stocks flat; LME price last at $1,677; Cash-3s stable at around $14 contango. Some lower offers heard at $20 for Indian brands for on-warrant materials
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CIF Singapore
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80-90 ingots
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Premiums under pressure amid low buying interest and low offers, market largely stable and cautious after recent price volatility - premiums starting to come under pressure, with rogue low offers intermittent in market
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South Korea
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65-75 off-wt
65-75 on-wt
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11% of stocks, LME stocks flat. High off-warrant stocks around 500,000t
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CIF Korea
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80-90 ingots
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High stocks; last PPS tender for 2,000t of Australian origin (no tax) 99.7% at $104/t; another 1,000t at $101/t for 99.7% for Indian origin (no tax)
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Malaysia
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65-75 off-wt
40-60 on-wt
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8% of stocks, LME stocks down 14,625t
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CIF Malaysia
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80-90 ingots
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Quiet market
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Rotterdam
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65-75 DUP, 110-125 DP ingots
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33% of stocks; LME stocks up 275t; demand tepid during the summer season, low trading liquidity, weight of DUP offers increases competitiveness; more aggressive offers seen of late on duty-paid cargos; market closely eyes spreads for direction. Premiums are expected to drop further if demand remain tepid, some warehouse incentives heard at $55
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Vlissingen
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Clearing with queue
60-70 DUP, 105-120 DP noQ
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14% of stocks; stocks flat; Queues drop to 315 calendar days (220 working days) or 10.5 months in end-June from 336 calendar days in prior month.
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Antwerp
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65-75 DUP, 110-125 DP ingots
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1% of stocks; LME stocks flat
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Italy
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150-160 DP FCA
150-155 in the North and 155-160 in the South
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4% of stocks; stocks down 8,450t; South-North premium differential maintained - albeit lower than before - as supply to South remains tighter, premiums under pressure as more sellers coming into the market while demand still stable but soft.
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Spain
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150-160 DP FCA
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1% of stocks; LME stocks flat
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Turkey
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100-110 DUP FCA
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Demand from Turkish market fails to keep up with increased supply, some Iranian units also being offered below prevailing market premium - supply of duty-free and ‘good western’ brands sufficient.
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Baltimore
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130-140 INW noQ
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3% of stocks; LME stocks flat; in strong hands
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Detroit
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Clearing with queue
130-140 INW noQ
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3% of stocks
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Chicago
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130-140
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Stocks depleted
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New Orleans
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130-140, locked up
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LME stocks flat (only 500t)
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Mobile
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130-140 INW noQ
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No LME stocks
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US Midwest
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6.9-7.25 cents/lb dlvd DUP
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6% of stocks; stocks flat. US spot demand slows while imports keep coming. Premium now at a five year low.
Billet premiums have also come under pressure - falling to 10.5-11.0 cents per pound, down from 10.75-11.5 cents.
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Shanghai
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90-100 CIF
90-100 bonded
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CIF premiums stable, floods in China has affected some transportation but limited impacts so far on premiums
trading volume thin due to negative physical arbitrage, market sees some signs of potential restarts in China in H2 given the rising LME price and decreasing stocks in the country;
Bonded stocks drift to 32,000-37,000 tonnes in end-June from 33,000-38,000 tonnes at the end of May.
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CIF Taiwan
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80-90 CIF
80-90 bonded
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1% of stocks; LME stocks flat; plenty of off-warrant stock available - premiums under pressure in line with Japanese spot market.
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CIF Japan
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Spot market at $80-90
Most deals heard for Q3 MJP at $90-93 with producers
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Most deals for third quarter supply heard in a range of $90-93; some buyers still holding off from signing contracts in hope of lower offers.
$90-93 deals are down 21-22 percent from second quarter settlement at $115-117.
Spot trades last around the $85 mark, increased supply from Middle East. MJP port stocks increase 12,400 tonnes in May to 337,200 tonnes.
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2016 contracts
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Premium curve flattens for 2016; less upside seen in H2; some fixed contracts heard above 10 c/lb in US. Europe: buyers prefer floating premiums.
2015 recap - Europe: Rotterdam DP at 480-490 inw, Italy 520-540 DP FCA. US Midwest mainly on floating basis, some fix contract talks at 10-12 cents/lb. Asia - partly booked on floating MJP basis, partly left for spot.
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Zinc SHG
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Singapore
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60-70 high lead
70-80 low lead
100-115 FCA high lead
115-125 FCA low lead
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1% of stocks, LME stocks flat. Price close to $2,200/t after near 3pct gains on Tuesday. Cash-3s tightens to $4.50 contango. Trading houses hold large stocks on/off-warrant, thin liquidity
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Malaysia
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60-70 high lead
70-80 low lead
100-115 FCA high lead; 115-125 FCA low lead
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2% of stocks; LME stocks flat. Off-warrant stocks in SE Asia estimated at 100,000-150,000t
Last PPS tender at $160 for Belgian and $235 for Korean material
Delta between high and low lead material thinner as quality improves
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India
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CIF DUP 135-150;
Duty-Free 175-195
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Premiums for DUP vary depending on different ports, brands and tonnages.
Premiums for duty unpaid and duty-free material drop as market close to saturation point after months of imports - HZL refined supply roughly back to normal.
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Rotterdam
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FCA 85-100 DUP, 130-140 DP, 70-80 inw
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2% of stocks, LME stocks flat. Market stable, European orders tone down as market drifts to summer mentality.
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Antwerp
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FCA 85-100 DUP, 130-140 DP, 60-70 high lead inw
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9% of stocks, LME stocks down 500t
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Italy
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160-170 DP FCA; 195-205 dlvd
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No LME stocks, thin buying interest, ample supply, some competitive offers heard below market
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US warrants
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0-5
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86% of stocks, LME stocks down 1,525t
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US Midwest
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6.75-7.0 cents/lb dlvd
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Premiums trend lower due to the summer slowdown but traders continue to hold metal tightly in expectation of higher Q4 premiums. Demand solid after anti-dumping rulings.
High off-warrant stocks heard at 200-250kt
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Shanghai
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95-110 CIF
95-110 bonded
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Premiums unchanged, unfavourable arb between the LME and the SHFE, thin trading volume; demand tepid.
Bonded stocks hit 10-month high of 113,000-127,000 tonnes as of the end of June, up from 110,000-125,000 tonnes end-May.
Taiwan at 115-130 CIF, no LME stocks
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Jebel Ali - Dubai
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120-140 FCA high lead
165-175 FCA low lead
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No LME stocks. Off-warrant stocks reported around 20,000t
Premiums down for low lead material as big trading houses liquidate positions, local demand thin
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2016 contracts
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US deals at 7-7.75 c/lb dlvd; Europe deals done at 125-145 DP FCA Rotterdam. Lower trend seen in Asia - China deals done at 100-120 CIF; Taiwan deals done at 130-145 CIF; SE Asia offers at 145-160 CIF, bids at 125-150.
2015 recap: very few LTC deals in China due to bids-offers $30-60 apart (offers 130-160); Southeast Asia: 170-185 CIF; Taiwan: 160-180 CIF with producers, traders lower at 155-160; US at 9-9.5 cents/lb. Europe: Italy 230-240 dlvd, Rotterdam at 140-160 DP FCA. Middle East at 190-210 FCA
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Nickel
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Singapore
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30-80 FP; 5-10 briq; 60-70 cut (no offers)
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15% of stocks; LME stocks up 396t. Price soars to 7 month high of $10,515 after Philippines government closes mines for environmental reasons, audits mining industry.
Cash-3s contango narrows to $42. Premiums in wide range; high rates quoted for increasingly difficult to source Russian SHFE-deliverable cathodes; non-deliverable brands at lower end.
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South Korea
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30-80 FP, 5-15 briq
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3% of stocks; stocks up 966t; last PPS tender for 120t at $300 CIF premium
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Malaysia
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30-80 FP / 5-10 briq no queue
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38% of stocks; stocks down 612t, no queue in Pacorini Johor
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Rotterdam
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85-105 FP; 100-120 briq; 200-210 cut
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20% of stocks; stocks down 6t, most briqs and ferro-nickel/lower grade sold out for Q3; artificial tightness felt as availability of full plate increasingly tighter with material tied up in financing deals, continued shipments to Asia and producers sold-out for nearby months.
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Vlissingen
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80-100
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LME stocks flat (only 198t), no queue
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Antwerp
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80-100
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LME stocks up 294t (only 516t), no queue
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Sweden
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80-100
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LME stocks flat at zero, no queue
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UK
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80-100
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2% of stocks; LME stocks flat
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US Midwest
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12-16 cents/lb melting
60-65 cents/lb plating
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2% of stocks; LME stocks flat. Tightness in cut cathodes eases. Discounted briquettes still in market
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Shanghai
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130-150 FP bonded non-SHFE
160-180 SHFE
130-150 FP CIF non-SHFE
160-180 SHFE
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Premiums soften as negative import arb worsens on LME price hike, tight supply of lower grade products; 25-30% ni content ferro-nickel premiums heard at $100-200.
Jinchuan will cut production by 10,000 tonnes this year.
Talks that Smelters in Asia sold out of FeNi until end of year.
Sumitomo Metal Mining in talks to register SMM brand cathodes on the SHFE.
SHFE lifts nickel warehouse storage capacity by 34kt earlier in June, more expansions expected.
Demand for high grade nickel products strengthens as NPI/FeNi/Scrap shortage bites; Australian BHP briqs sought direct from origin.
Bonded stocks fell in June to a five-month low of 65,000-75,000 tonnes from 80,000-90,000 tonnes in end-May.
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Taiwan
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30-80 FP; 5-10 briq
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15% of stocks (mostly briq); LME stocks down 5,814t.
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Dubai
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30-40
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5% of stocks (mostly briq), LME stocks flat
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Japan
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12-13 cents/lb GSP duty free
130-140 FP CIF
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No LME stocks; very quiet market - Japan has enough local/duty-free supply
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2016 contracts
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Deals in Europe reached with premiums of $40-65 per tonne on in-warehouse Rotterdam basis, down from a wider range of $50-90 in 2015.; offers seen at 120-130 FP CIF Shanghai; some buyers would rather play spot market in 2016 than agree to full-year fixed contracts
2015 recap - China: some contracts booked at 120-130 CIF FP, fewer LTC deals. Europe: 50-90 FP inw. US melting FP at 15-25 c/lb
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Lead
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Singapore
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15-25 for 99.97%
60-80 for 99.99%
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No LME stocks; prices close to $1,900/t; cash/3s in $5 contango. Battery scrap less tight, spot buying interest thin, 49s purity upcharge under pressure as battery makers look for cheaper alternatives in hyper-competitive marketplace
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Malaysia
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15-25 for 99.97%
60-70 for 99.99%
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25% of stocks; LME stocks flat; South-East Asia at 65-90 CIF for 99.97% and 130-150 CIF for 99.99%
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South Korea
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0-15 for 99.97%
80-100 CIF for 99.97%
135-150 CIF for 99.99%
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27% of stocks; LME stocks flat. Last Korean PPS tender at $144 CIF duty free for 99.99% Korean origin.
Secondary lead producers bid less for battery scrap, less supply tightness
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Taiwan
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10-20 for 99.97%
CIF 65-85 for 99.97%, 120-130 for 99.99%;
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LME stocks flat at 25t; battery producers well supplied on LTC, quiet market
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India
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50-70 CIF for 99.97%
120-140 CIF for 99.99%
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Premiums drift lower due to ample domestic supply and continued low premium offers for Iranian metal
Duty-free 99.99% offers heard at 200.
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Rotterdam
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10-20 for 99.97%; 60-70 DP FCA
165-175 DP FCA for 99.99%
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6% of stocks, LME stocks down 125t, warrants in strong hands
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Vlissingen
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0-15
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31% of stocks; LME stocks flat, no queue
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Antwerp
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10-20 DP 99.97%
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5% of stocks; LME stocks flat, no queue
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Spain
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15-20
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6% of stocks; LME stocks flat
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Italy
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15-20 for 99.97%; 80-90 FCA DP
145-155 dlvd North Italy
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LME stocks flat at 300t, slow demand, tight battery scrap
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US warrants
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20-30
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No LME stocks
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US Midwest
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6.5-7.5 cents/lb dlvd for 99.97%; 10.5-11.5 cents for 99.99%
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Premiums edge lower due to cheap imports from Asia and South America
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2016 contracts
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US: early 2016 99.99% deals at 12.5-14 cents. Asia: offers at CIF $90-100 for 99.97%; 99.99% deals at 125-135 CIF Taiwan, 130-150 elsewhere on KZ expansion. Deals at $130 dlvd for 99.97% in Eastern Europe, $150-160 dlvd for 99.97% in Italy.
2015 recap: Asia: 99.97% at 90-110 CIF Asia, 99.99% at 140-170; India: 99.97% at 75-95 CIF; Europe: 99.97% at 140-155 dlvd; US 13-14 cents dlvd Midwest for 99.99%, 99.97% around 10 cents.
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Tin
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Singapore
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0-20 for 99.85%; 50-80 for 99.9%, 210-260 low lead (<100ppm)
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46% of stocks; LME stocks down 5t in Singapore. Tin price posts further gains, now just off $18,000/t, cash-3s backwardation at $26; Premiums vary on quality tonnage and payment terms.
Just 10 lots traded on Indonesia’s ICDX in July due to Ramadan fasting and holidays, but market expects consistent exports this month.
Strong availability of RBT 99.9% warrants in LME clearing. Koba brand and Chinese low-lead PGMA tin also available at below-market premiums.
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Malaysia
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0-20 for 99.85%
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53% of stocks; stocks down 45t, no queue. Some 99.9% offered at 125-150
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South Korea
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75-125 for 99.85% DUP, 200-250 for 99.9%
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1% of stocks, LME stocks flat at 30t, quiet market, high off-warrant stocks. Last PPS for 100t of 99.85% at $490 (duty free) in June
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Rotterdam
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325-375 for 99.85%; 350-400 for 99.9%; 450-500 low lead (<100ppm)
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No LME stocks. European demand showing encouraging signs in what is usually a seasonally slow time before summer holiday season. Market supply more than enough.
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CIF Rotterdam
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300-350 for 99.85%, 320-370 for 99.9%; 440-490 low lead (<100ppm)
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Some end-users cover with LME prices rising.
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CIF Shanghai
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125-175 for 99.85%; 200-250 for 99.9%; 310-360 low lead
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Chinese government is considering adjusting exporting and importing policy to support qualified enterprises to carry out processing trade of tin concentrate, according to a statement from the State Council in June.
Chinese import of tin ore and concentrates from Myanmar rose 87.9 percent year-on-year to 40,316 tonnes in May.
Chinese smelters claim to cut 17,000t refined production but actual cuts will be less.
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US Baltimore
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390-420 for 99.85%, 425-475 for 99.9%; 450-600 low lead (<100ppm) in-warehouse
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No LME stocks, still reasonable off-warrant inventories, buying interest stable; wide premium range for low lead: <50 ppm valued around 600s
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US Midwest
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450-550 for 99.85%; 525-575 for 99.9%; 625-675 low lead
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Lower offers seen direct from producers.
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2016 contracts
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2016 99.9-percent premiums decline in Europe: some annual deals heard at $340-420 CIF Rotterdam; for low-lead, some annual deals at $490-520 CIF Rotterdam
2015 recap - Rotterdam booked above 550 inw for low lead (550-600 in 2014) and 360-400 for standard 99.9% (425-450 in 2014). No numbers for MSC (380-400 in 2014), Asia: some deals at 260-300 for 99.9%, some suppliers shun LTCs
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Premiums are paid on top of London Metal Exchange cash prices to acquire ownership or secure delivery of physical metal at an agreed location and date. Rates vary according to brand, specification, purity, tonnage, payment terms and warehouse operator.
FastMarkets assess premiums for LME warrants based on in-warehouse delivery excluding FOT removal charges and for physical material based on CIF or FCA delivery. They are nominal indications only, based on contributions from market sources, and should not be construed as actual bids and offers.
Our stocks data represent weekly variations for warranted volumes. Clearing material can be obtained at level by brokers only through the LME clearing system.
(Table compiled by FastMarkets’ Physical reporting team, physicals@fastmarkets.com )
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