IZA CONF 2018 - Curtain raiser: Price, supply outlook hazy

Negotiations between zinc miners and smelters during the International Zinc Association (IZA) conference in Carlsbad, in the US state of California, promise to be particularly lively this year - given mixed market outlooks and an uncertain supply picture.

The initial long-term contract offers from both sides reflect a deep discrepancy in how the market is viewed for the long term.
Zinc miners have offered smelters outside of China a flat treatment charge (TC) of $90 per tonne, compared with $172 per tonne last year, Metal Bulletin has learned. And smelters have countered with TC bids of more than $200 per tonne and a base zinc price of $3,200 per tonne. Smelters have also proposed the re-introduction of scales.
Zinc prices on the London Metal Exchange reached a series of 10-year highs at the end of 2017, due to a lack of supply and growing demand. The LME’s three-month zinc contract averaged $3,412.80 per tonne in January 2018, up 27.4% from an average $2727.74 per tonne in January 2017.

Published

Millicent Dent

February 12, 2018

01:53 GMT

New York