China Sells Zinc From Reserves at Below Market Price

Nov. 12 (Bloomberg) -- China, the world’s biggest metals consumer, sold almost all the zinc on offer from state reserves at below-market prices in the latest auctions held in an attempt to curb price gains. Shanghai futures fell by the daily limit.

The government sold 49,992.97 metric tons of 50,000 tons on offer through auctions on Nov. 9 at an average price of 19,511 yuan ($2,946) a ton, said the State Bureau of Material Reserve, which is under the National Development and Reform Commission. Shanghai. The highest price was 19,750 yuan and the lowest 19,110 yuan.

Zinc prices in Shanghai rose to the highest in nine months in October and the sales follow auctions of aluminum last week. The government has sold paper pulp, magnesium, sugar, cotton and corn from state reserves this year to ease supply shortages and curb high prices and tame inflation, which gained to the highest level in two years last month.

“A series of releases from the state reserves sent the message that the price increase of commodities are unacceptable, and the government can and is ready to take actions,” Zeng Tong, an analyst at data provider Shanghai Metals Market, said before the announcement.

China’s consumer price index climbed to 4.4 percent in October, the National Bureau of Statistics said Nov. 11, building the case for the central bank to add to last month’s interest-rate increase.

Taming Prices

Metal for May delivery on the Shanghai Futures Exchange dropped 5 percent from the previous settlement price to 19,935 yuan a ton today. It reached 21,785 yuan on Oct. 26, the highest level since January. Zinc on the London Metal Exchange declined 3.6 percent to $2,450.50 a ton.

“Some of the metal was produced a few decades ago, so a slightly lower prices is acceptable,” Wang Xiang, an analyst at Cofco Futures Co. said.

Some metals producers in China have been ordered by the local governments to suspend operations as regional government’s strive to meet Beijing’s energy-saving goal set for the end of 2010. Aluminum smelters have been affected the most.

Shaoguan smelter of Shenzhen Zhongjin Lingnan Nonfemet Co. has started to suspend operations since Oct. 21 after authorities found that excessive levels of thallium were discharged by the plant into a river. Zhongjin is the nation’s third-largest zinc producer.

Still, “zinc smelters have not been seriously affected by the power constraint, and there is no supply shortage,” Shanghai Metals’ Zeng said.

The bureau will sell 34,500 tons of lead on Nov. 16.

--Helen Sun. With reporting by Feiwen Rong. Editors: Richard Dobson, Jake Lloyd-Smith.
000060 CH CN
To contact the Bloomberg News staffs on this story: Helen Sun in Shanghai at hsun30@bloomberg.net; Feiwen Rong in Shanghai at fron2@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net
http://www.businessweek.com/news/2010-11-11/china-sells-zinc-from-reserves-at-below-market-price.html

Zinc moves up in futures trade on spot demand

NEW DELHI: Zinc prices gained Rs 0.95, or 1.00 per cent, to Rs 96.20 per kg in futures trade today, as speculators created positions, driven by rising demand in spot market.

At the Multi Commodity Exchange counter, zinc for August gained Rs 0.95, or 1.00 per cent, to Rs 96.20 per kg, with an open interest of 7,662 lots.

Similarly, the metal for delivery in September traded higher by Rs 0.95, or 0.99 per cent, to 97.25 per kg, with an open interest of 773 lots.

Market analysts attributed the rise in zinc futures prices to a rising demand in the spot market.

http://economictimes.indiatimes.com/markets/commodities/Zinc-moves-up-in-futures-trade-on-spot-demand/articleshow/6305275.cms

Zinc futures weakens on profit-taking, overseas trend

Zinc prices fell by Rs 0.70 or 0.79 per cent, to Rs 87.80 per kg in futures trade today due to profit-booking by traders amid weak trend overseas.

Sluggish demand at spot markets also put some pressure on the zinc prices in futures trade.
At the Multi Commodity Exchange platform, zinc for August contract fell by Rs 0.70 or 0.79 per cent, to Rs 87.80 per kg, with a turnover of 55 lots.
The metal for delivery in most-active July contract also moved down by Rs 0.65 or 0.74 per cent to Rs 86.80 per kg, with a business volume of 1,444 lots.
At the London Metal Exchange, zinc fell by $24, or 1.26 per cent to $1,880 per tonne.
Market analysts attributed the weakness in zinc at futures market to sluggish spot demand and losses at the London Metal Exchange, apart from profit-booking by speculators.

http://www.business-standard.com/commodities/news/zinc-futures-weakensprofit-taking-overseas-trend/101018/&tp=on

Zinc futures rises on short covering

NEW DELHI: Zinc prices recovered by Rs 0.35, by 0.43 per cent, to Rs 80.95 per kg in futures market on Wednesday, as speculators covered up their short positions in view of monthly expiry.

Better trend at the London Metal Exchange after previous session's losses also helped zinc futures to trade higher.

On the Multi Commodity Exchange counter, zinc for delivery in June contract traded Rs 0.35, or 0.43 per cent higher at Rs 80.95 per kg, with a turnover of 256 lots.

The metal for delivery in July contract also gained by Rs 0.30, or 0.37 per cent, to Rs 82.35 per kg, with an open interest of 151 lots.

At the London Metal Exchange counter, zinc rose 0.98 per cent to $1,760 per tonne in early trade today.

Market analysts attributed the recovery in zinc futures prices to covering up of pending positions by speculators, as today being the last session of June-month.

Besides, recovery in base metals at the London Metal Exchange in early trade today also supported the upswing, they said.

http://economictimes.indiatimes.com/markets/commodities/Zinc-futures-rises-on-short-covering/articleshow/6109655.cms 

Nyrstar Says Fire Cuts Zinc Output at Smelter By 20% (Update2)

May 21 (Bloomberg) -- Nyrstar NV, the world’s largest zinc producer, said a fire at its Hobart smelter in Australia cut output by an estimated 20 percent.

The company is studying the damage and has no estimate on the cost, or when full production will resume, smelter general manager Jeremy Kouw said today by phone. No one was injured and government investigators are at the site, Kouw said. The stock fell as much as 8.5 percent.

The smelter, in the capital of Tasmania state, has a production capacity of 260,000 metric tons and exports mainly to Asia, according to the Balen, Belgium-based company’s website. China consumes 41 percent of the word’s zinc, used to rust-proof steel, Deutsche Bank AG estimates.

Nyrstar tumbled as much as 64 cents to 6.90 euros in Brussels trading, the lowest intraday price since Sept. 2, and was at 7.06 euros at 10:01 a.m. local time.

Zinc for three-month delivery rose 0.2 percent to $1,878 a ton on the London Metal Exchange.

The Hobart smelter gets most of its metal from the Zinifex Century mine in Queensland state and the Rosebery mine in Tasmania, according to the company.

--Editors: Keith Gosman, Andrew Hobbs
To contact the reporter on this story: Jason Scott in Perth at Jscott14@bloomberg.net.
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net
http://www.businessweek.com/news/2010-05-21/nyrstar-says-fire-cuts-zinc-output-at-smelter-by-20-update2-.html

Zinc prices down on poorer demand

NEW DELHI: Tracking weak global market, zinc prices drifted by Rs 1.50 or 1.56 per cent to Rs 94.40 per kg in futures trade on Friday. Subdued demand for the metal at the spot market also put pressure on the zinc prices.
At the Multi Commodity Exchange, zinc for June contract shed Rs 1.50, or 1.56 per cent to Rs 94.40 a kg, with an open interest of 647 lots.
The metal for delivery in May contract also traded Rs 1.45 or 1.52 per cent to Rs 93.80 a kg, with an open interest of 6,294 lots.
Meanwhile, at Shanghai, the metal traded 464 yuan or 2.69 per cent to 16,790 yuan per tonne, while at the London Metal Exchange it fell by $32 or 1.51 per cent to $2,083 per tonne. – PTI
http://www.thehindubusinessline.com/blnus/08071536.htm

China seeks Anglo's zinc assets

China Metallurgical Corporation is in the running for the $800m sell-off of zinc assets owned by Anglo American, the FTSE 100 mining giant run by chief executive Cynthia Carroll.
Bids are due in by the end of the month and the Chinese-state run enterprise is considered one of the favourites for the role because of its financial might. Private-equity giants Apollo and First Reserve are also considering bids after a round of presentations by the division's executives.
Indian FTSE 100 group Vedanta Resources and Canadian miner HudBay Minerals are also in the mix.
UBS and Goldman Sachs are running the sale process, which is part of a series of disposals planned by Ms Carroll to refocus the business. Two months ago, Anglo sold the European assets of construction aggregates subsidiary Tarmac for $400m.
Ms Carroll, 53, joined Anglo three years ago, and is considered one of the FTSE's foremost businesswomen.
Anglo shares closed at 2979.5p on Friday, up 73p on the day. The business is valued at nearly £39bn.
http://www.independent.co.uk/news/business/news/china-seeks-anglos-zinc-assets-1941131.html

Zinc cobalt plated connectors are available

Zinc cobalt plated connectors meet the requirements of Mil-C-26482 series 1 and replace the use of cadmium plating, over which there is some environmental concern.

Aerco now offers rapid deliveries on zinc cobalt plated versions of D38999 series III and AB05 connectors that meet the requirements of Mil-C-26482 series 1.

The investment in this service has been made to meet the growing number of customers showing concern about the environmental implications of using cadmium plating.
As an assembling distributor of the AB05 range of connectors from AB Connectors, Aerco stocks piece parts and assembles zinc cobalt plated AB05s at an assembly facility set up earlier this year at the company's UK headquarters in Horsham.
Aerco also supplies zinc cobalt plated D38999 series III connectors under a special distributor agreement with Deutsch.
Both types can be supplied within five days at highly competitive prices with no MOQs (minimum order quantities).
http://www.manufacturingtalk.com/news/aeo/aeo124.html

Smelters win higher zinc fees as mine supply increases - Analysts

Bloomberg cited analysts Mr Atsushi Yamaguchi and Mr Kim Gyung Jung as saying that Korea Zinc Company may win higher processing fees on increased mine supply.

Mr Yamaguchi said that “We expect a small increase of 2.5% this year as mine supply is now enough. Actual processing fees are predicted to increase to USD 363 per tonne in 2010 from USD 354 in 2009, based on an average zinc price of USD 2,538 per tonne.

Zinc, used to galvanize steel has doubled in the past year as the global economy recovered from its worst postwar recession, spurring more mine production. The fee paid to smelters gains when the supply of raw material, or so called concentrate, grows as miners compete for processing capacity. Agreements between Teck Resources Limited and Korea Zinc typically set a benchmark.

Mr Kim an analyst at Samsung Securities in Seoul said that annual fees are normally settled during the American Zinc Association’s industry gathering. The meeting will be held from February 28 to March 2 in Scottsdale.

Samsung’s Mr Kim and Mr Lee Won Jae an analyst with SK Securities Company in Seoul also said that smelters should benefit this year from higher metal prices declining to elaborate.

Korea Zinc spokesman Mr Lee Sang Hoon and Mitsui Mining & Smelting spokesman Mr Yushi Sugiura said that no deal had been reached, while Teck Resources declined to comment.

Mitsui Mining & Smelting and Sumitomo Metal Mining Company own a JV called MS Zinc Company. Teck Resources, which owns the world’s biggest zinc, mine at Red Dog in Alaska. The metal for 3 month delivery climbed 3% to USD 2,179 per tonne at 6:40 PM Singapore time today. The price reached USD 2,736 on January 7th 2010, the highest level since March 2008.

Macquarie Group analysts including Mr Colin Hamilton said that “Terms will probably settle on a benchmark treatment charge in the mid USD 200s at a base zinc price of USD 2,000 per tonne. This would represent a drop in the share of revenues to smelters at this price level compared with last year. This comes despite a steeper rise in smelters’ costs compared with miners’ costs in recent years and is a trend that we expect to continue in the medium term.”
http://steelguru.com/news/index/MTM1MTA5/Smelters_win_higher_zinc_fees_as_mine_supply_increases_-_Analysts.html

Hind Zinc net rises 3-fold to Rs 1,149 cr

MUMBAI: Hindustan Zinc’s net profit trebled in the December quarter because of higher sales as well as price realisation of zinc and lead. Net
profit of the company went up to Rs 1,149 crore in the December quarter from Rs 369 crore in the year-ago period. Revenue, during the period, increased by 115% to Rs 2,217 crore.

“The positive impact of higher prices at the London Metal Exchange, volume and operational efficiencies on net profit was partially offset by the substantial decline in the by-product credit realisation and impact of long-term settlement of wage agreement effective from July 1, 2007, with the HZL union,” the company said in a stock exchange filing.

The average LME price of zinc rose by 86.6% to $2,221 per tonne, while that of lead rose by 84% to $2,292 per tonne in the December period.

Production of saleable lead was up 30% to 19,191 tonne. Silver production, too, went up by 44% to 35,633 kg from 24,722 kg a year ago. However, the production of saleable zinc was down 2% to 1,48,126 tonne from 1,51,735 tonne a year ago, but its increased price per tonne compensated for the fall in production.

Also, an increased production of 40,972 tonne of surplus zinc concentrate added to the company’s topline. “The extra production of zinc concentrate fetched the company about Rs 157 crore in the third quarter of this financial year,” said Pawan Burde, vice president — research, PINC Research.

The company’s construction work for 2,10,000 tonne zinc and 1,00,000 tonne of lead smelter at Rajpura Dariba in Rajasthan with 160 mw associated captive power plant is on schedule for completion by mid-2010, said the company in its release.

“The company’s expected cash in its books should be close to Rs 12,000 crore by the end of FY10,” said Mr Burde.

http://economictimes.indiatimes.com/news/economy/finance/Hind-Zinc-net-rises-3-fold-to-Rs-1149-cr/articleshow/5490159.cms