Even before considering price participation, smelter revenues from zinc concentrates had been cut as a result of the negotiated cut in this year's contract treatment charges. And last month, with LME zinc prices again in the doldrums, zinc smelter revenues fell to 213 US dollars/t of concentrate. Despite conceding US 14 cents for every 1 dollar/t fall in the zinc price, zinc smelters' share of revenues actually increases as the price falls. Five percent was conceded as a result of the negotiated cut in contract treatment charges. Smelters negotiated a 37.4 percent share of payable metal in concentrate (based on a basis price of 1,000 dollar/t) but in August they earned a 39.5 percent share. In real terms, zinc smelter revenues look even worse, languishing at a level not seen since 1982. That year, operations at a number of smelters were idled and Western world refined zinc production duly fell 4.9 percent.
展开▼
