End of NIF strike unlikely to push zinc premiums lower in near term, participants say

The end of the nine-month strike at Noranda Income Fund’s (NIF's) zinc processing facility in Salaberry-de-Valleyfield, in the Canadian province of Quebec, is unlikely to push spot market premiums lower in the near future, according to market participants.

Union workers at the facility, which is operated by Canadian Electrolytic Zinc (CEZinc), voted in favor of a new collective agreement on Saturday November 25.
Downward pressure on the premium is unlikely, even with NIF’s facility ramping back up, one trader said, arguing that the main reason premiums have risen since the start of the year is because “stocks were being depleted globally.” And NIF only produces “a small amount” globally, he noted.
The US-delivered zinc premium currently stands at 8-9 cents per lb, up from 6-6.5 cents per lb at the start of the year.

Indeed, reported zinc inventories have recently...

Published

Millicent Dent

November 29, 2017

02:11 GMT

New York