Mitsui Mining & Smelting Reduces Zinc Ingot by 26,000 yen/t

Mitsui Mining & Smelting announced on Tuesday the firm decreases the official zinc ingot price by 26,000 yen to 551,000 yen per tonne for November shipment, which is first drop since October 2. The price canceled the increase earlier the month under plunging copper and aluminium price at London Metal Exchange. The averaged monthly official price decreases by 5,600 yen to 556,500 yen. LME zinc price decreased by US$ 249.50 to US$ 4,210 per tonne at settlement on Monday from Friday, which was the level at the end of October. The price had renewed the record under lower LME stock. However, the market turned into cautious attitude and speculators sold to settle the positions after the price jumped more than US$ 1,000 in a month. LME zinc stock was still low at 94,200 tonnes on Friday, which was 76% lower from the beginning of the year. The supply is still tight when International Lead Zinc Study Group expects the shortage could continue until 2007.