Japan Official Zinc Price Hits Yearly Lowest at 295,000 yen/t

Mitsui Mining & Smelting announced on Wednesday the firm revised down the official zinc ingot price by 35,000 yen to 295,000 yen per tonne for domestic shipment in November. The latest price hit the yearly lowest and became to below 300,000 yen for the first time since February 2006 to reflect the decline of overseas zinc market and the underlying trend of stronger yen against US dollar. The monthly average would be 331,000 yen without any more revision within November.Zinc spot price at London Metal Exchange hit the yearly lowest at US$ 2,321 per tonne at settlement on Tuesday, down by US$ 100.5 from Monday. Global zinc ingot supply is being easier due to the output increase of zinc ore. LME zinc price is also impacted by confused financial markets under the influence of US subprime lending.Nonferrous metals demand is concerned to decline due to the slower global economy although oil and gold markets maintain strong tones supported by inflation concerns and weaker US dollar. Telegraphic transfer selling rate was 110.86 yen per US dollar on Wednesday. Yen became the yearly strongest against US dollar when financial markets are in confusions.