Bloomberg cited Mr Duncan Hobbs an analyst at Macquarie Group Limited as saying that zinc processing fees will probably rise almost 10% from last year as increased ore supplies enable smelters to charge miners more.
Mr Hobbs said that smelters including Korea Zinc Company and mining companies such as Teck Resources Limited are in annual negotiations at an International Zinc Association conference in Cancun, Mexico, over treatment charges that mining companies pay to have their semi processed ore turned into finished metal. The talks will probably be completed in the next 2 or 3 days.
He said that the fees are likely to settle at about USD 210 per tonne based on a zinc price of USD 2,000 per tonne. The were USD 191 per tonne last year on a zinc price of USD 2,000 per tonne. The fees to refine semi processed ore also known as concentrate, generally rise when supplies of ore increase.
The balance in this year’s negotiations is with the smelters. There’s still likely to be a surplus market this year. The price of zinc, used to rust proof steel is up 0.4% this year on the London Metal Exchange.steelguru.com