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