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[johnlw]

Post says Teck, others enjoy record zinc prices

2006-01-10 07:21 ET - In the News

Also In the News (C-HBM) HudBay Minerals Inc
Also In the News (C-NIF) Noranda Income Fund

The Financial Post reports in its Tuesday edition that zinc is the latest commodity to surge to a record high after an already limited supply was threatened Monday. The Post's Drew Hasselback writes a refinery shut down in Mexico and there is worry of a smelter closure in China. At one point, spot zinc was trading on the London Metal Exchange for $1,998 a tonne (90.6 cents a pound), surpassing a previous high set on March 13, 1989. Zinc closed on the LME at $1,968 a tonne (89.3 cents a pound) (all figures U.S.). Demand for basic materials from China and other parts of the developing world is surging. Zinc producers Teck Cominco, Falconbridge and HudBay Minerals were among miners whose shares hit 52-week highs during intraday trading. The tight market for zinc was highlighted after producer Grupo Mexico said it had shut its refinery in the Mexican state of San Luis Potosi because of an electrical power failure. The Mexican plant accounts for about 107,000 tonnes a year. That is less than 1 per cent of world zinc output. Still, the amount is significant when seen against last year's supply shortfall. In China, a leak at the Zhuzhou Zinc Smelter led to fears the plant may shut down.