Japan Official Zinc Price Below 200,000 Yen/t after 37 Months

Mitsui Mining & Smelting announced on Thursday the firm revised down the official zinc ingot price by 20,000 yen to 190,000 yen per tonne for domestic shipment in October. The price became below 200,000 yen for the first time since September 2005. The firm has revised the price 3 times within October by total 14%.

Zinc spot price at London Metal Exchange, the indicator, was US$ 1,508 per tonne at settlement on 8 October, down by US$ 8 from the previous day. The spot price plunged to below US$ 1,450 in afternoon trading on the same day.

The telegraphic transfer selling rate was 100.98 yen per US dollar on 9 October. Yen became stronger by 4.49 yen against US dollar after Mitsui Mining & Smelting previously revised the ingot price on 6 October.

Zinc mine’s profitable line is generally said at US$ 1,800-1,900 per tonne. LME zinc price became lower than the line in August with loose supply and demand balance. Zinc producers are recently halting or closing mines due to worse profitability. Recent financial crisis caused additional US$ 400 price down.