PRICING NOTICE: Metal Bulletin proposes to amend minimum tonnage for European zinc premium assessments

Metal Bulletin is running a one-month consultation to seek feedback on whether to keep or amend the minimum tonnage used in the assessments of its zinc premiums for European countries.

At present, Metal Bulletin publishes four weekly assessments for European zinc premiums:

  • Zinc SHG ingot FCA duty-paid Rotterdam
  • Zinc SHG ingot FCA duty-paid Antwerp
  • Zinc SHG ingot FCA duty-paid Italy
  • Zinc SHG ingot delivered duty-paid Italy

The minimum lot size in all of the above assessments is 25 tonnes, which is also used in Metal Bulletin’s premium assessments for special high grade (SHG) zinc ingots in the other markets.

Certain market participants have expressed concerns over the representativeness of premiums for small parcels and suggested an increase in the minimum tonnages of the assessments. Meanwhile, some others see the inclusion of small size deals as a better gauge of the diverse spot market.

In light of these initial market comments, Metal Bulletin is considering raising its minimum tonnage zinc deal size in Europe to 100 tonnes and invites opinions from market participants on the lot size that best reflects the dynamics of European zinc market.

Please see the current specifications as below:

Description: Zinc SHG ingot FCA duty-paid Rotterdam
Type: Assessed range
Basis: Free-carrier basis delivery in Rotterdam, duty-paid premium on top of LME cash prices
Grade: Special High Grade zinc of minimum 99.995% purity, conforming to LME specifications and
relevant standards: BS EN 1179:2003, ISO 752:2004 – ZN-1 grade, ASTM B6-12 – LME grade or GB/T 470-2008
Currency: USD
Unit: Tonne
Min lot size: 25 tonnes
Payment terms: Cash, other payment terms normalized
Delivery Window: Within 4 weeks
Form: Ingot
Publication: Weekly. Tuesday between 3pm and 4pm, London time

Description: Zinc SHG ingot FCA duty-paid Antwerp
Type: Assessed range
Basis: Free-carrier basis delivery in Antwerp, duty-paid premium on top of LME cash prices
Grade: Special High Grade zinc of minimum 99.995% purity, conforming to LME specifications and
relevant standards: BS EN 1179:2003, ISO 752:2004 – ZN-1 grade, ASTM B6-12 – LME grade or GB/T 470-2008
Currency: USD
Unit: tonne
Min lot size: 25 tonnes
Payment terms: Cash, other payment terms normalized
Delivery Window: Within 4 weeks
Form: Ingot
Publication: Weekly. Tuesday between 3pm and 4pm, London time

Description: Zinc SHG ingot FCA duty-paid Italy
Type: Assessed range
Basis: Free-carrier basis delivery in Italy, duty-paid premium on top of LME cash prices
Grade: Special High Grade zinc of minimum 99.995% purity, conforming to LME specifications and
relevant standards: BS EN 1179:2003, ISO 752:2004 – ZN-1 grade, ASTM B6-12 – LME grade or GB/T 470-2008
Currency: USD
Unit: Tonne
Min lot size: 25 tonnes
Payment terms: Cash, other payment terms normalized
Delivery Window: Within 4 weeks
Form: Ingot
Publication: Weekly. Tuesday between 3pm and 4pm, London time

Description: Zinc SHG ingot delivered duty-paid Italy
Type: Assessed range
Basis: Delivered duty paid consumer works in Italy, premium on top of LME cash prices
Grade: Special High Grade zinc of minimum 99.995% purity, conforming to LME specifications and
relevant standards: BS EN 1179:2003, ISO 752:2004 – ZN-1 grade, ASTM B6-12 – LME grade or GB/T 470-2008
Currency: USD
Unit: Tonne
Min lot size: 25 tonnes
Payment terms: Cash, other payment terms normalized
Delivery Window: Within 4 weeks
Form: Ingot
Publication: Weekly. Tuesday between 3pm and 4pm, London time

The consultation will end one month from the date of this pricing notice, on Thursday September 6. Subject to market feedback, changes will take place from Tuesday September 11.

To provide feedback on this price or if you would like to provide price information by becoming a data submitter to this price, contact Archie Hunter/ Julian Luk by email at: pricing@metalbulletin.com. Please add the subject heading “FAO: Archie / Julian, RE: Min lot size for European zinc premium”. 

Click here to see all of Metal Bulletin’s pricing methodology and specification documents.

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