2012-12-27 23:16:49 -
Volcan Compañía Minera S.A.A. concluded the third and last tender of year 2012
for the sale of 150,000 wmt of zinc concentrates, 25,000 wmt of lead
concentrates and 25,000 wmt of copper concentrates for deliveries in years
2013, 2014 and 2015. Amid increasing concern over China's lower concentrate
import volumes and stock growth, the demand for this tender was outstanding
considering the general comment about concentrate markets received from last
Antaike Conference in China. Terms offered by different parties were very
competitive and made the
tender process last longer than initially expected.
Additional to comments about situation in China, gossip during the tender
remarked the fact of apparent high stocks of concentrates in Callao port.
However, this unusual higher level of stocks at warehouses in this port is more
related to poor loading and warehousing conditions in that location that
generate huge vessel congestion, causing a much higher average level on stocks.
At the end, the tender ended awarding zinc tonnages to multiple companies at
levels from low 30's to low 60's depending on year and quality. Incoterm
applicable was CIF Main Asian Port at current base price levels. On the lead
side, a stronger demand was seen for silvery material prompting an important
decrease in silver RCs closer to USD 1.00 per ounce. Mixed messages have been
quoted regarding concentrates markets in the last months. However, despite
bearish view of comments on the zinc side, demand continues being strong,
entering a new stage of time where production cuts will lead the way of TCs.
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Source: VOLCAN COMPAÑIA MINERA via Thomson Reuters ONE