Zinc talks in full flow

摘要

Negotiations of terms for next year's zinc concentrate supply contracts have now, got under way, with a small number of token deals having already been struck, and are in fervent mood. Well, that last comment certainly reflects the smelters' frame of mind. Talks have begun to focus on a narrower range of variables, with both sides appearing to have conceded some ground in comparison with the positions that we outlined in November's Monitor. There appears to be some consensus with respect to the positioning of the basis price. Miners seem to have won the day on this and most parties are now concentrating their negotiations on a figure of 2,500 dollars/t. This said, it probably reflects a wider industry realisation that zinc's price prospects are poor after the major losses experienced during the last month or so. Moreover, the industry no longer views our zinc price forecast as bearish in the extreme. It has served us well to date, and we see no reason to change it now.