zinc supply deficit graph, page-42

China demands pick up, now Europe is picking up too... everything points out at the deficit starting line "end of 2012 or early 2013" (see last sentence)


Zinc Premium Is Said to Climb in Europe as Demand Strengthens

By Agnieszka Troszkiewicz January 10, 2014

The premium agreed between zinc buyers and sellers for deliveries this year in Europe climbed amid improving demand and speculation supplies are limited, according to six people who trade the market.

The premium is about $160 a metric ton for special high-grade zinc loaded in Rotterdam, based on the median of midpoints from ranges given by the people, who asked not to be identified because the information hasn’t been made public. The surcharge, which includes import duty into the European Union, compares with $130 to $135 for last year. The people cited trades in ranges between $140 and $180.

Financing, which takes advantage of a market in contango, is still attractive and some suppliers have been shipping to China, the biggest consumer of the metal, to capitalize on higher premiums there, the people said. Zinc stockpiles in European warehouses monitored by the London Metal Exchange "halved" since June and are the lowest since October 2012.

Source: http://www.businessweek.com/news/2014-01-10/zinc-premium-is-said-to-climb-in-europe-as-demand-strengthens