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European zinc production has been curtailed in recent months due to soaring electricity prices, causing zinc prices to rally 25% last quarter. Late last year, Nyrstar, one the world’s largest zinc smelters, cut production by 50% at its Belgium and Netherlands operations. Its French operations also cut production by half late last year and briefly ceased production this year. However, Nyrstar recently announced that is restarting its French operations on a limited scale. Nyrstar normally has 720,000 mt of annual zinc production in Europe, according to Reuters. Global zinc supplies last year were estimated at around 14 million mt. |
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Consumers who are concerned about their zinc input costs should consider financial swaps or purchasing call options. Such positions are standard for consumer hedging, but they can result in opportunity costs or cash costs if metal prices decline. Please contact AEGIS for specific strategies that fit your operations. (4/5/22) |
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Note: Clients with AEGIS Platform access can see this and other research, plus hedge portfolio reporting and tools here. |
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AEGIS Insights |
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03/31/2022: AEGIS Factor Matrices: Most important variables affecting metals prices 03/23/2022: Russian Metals Production and Related News: Most Recent Developments (AEGIS Reference) |
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| Important Headlines | ||
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3/31/2022: Biden eyes Cold War-era defense law to boost mining sector 3/31/2022: METALS-Aluminium heads for biggest quarterly gain since 1988 3/30/2022: Tesla signed secret nickel supply deal with Vale - Bloomberg News 3/30/2022: Rusal's Guinea bauxite exports grind to a halt amid Ukraine crisis 3/29/2022: Column: European smelter squeeze keeps zinc close to record highs 3/29/2022: CRU-CESCO-LME to hold independent review into nickel crisis 3/29/2022: PRECIOUS-Gold retreats, palladium slides 9% on progress in Ukraine talks 3/29/2022: LME board to evaluate lessons from nickel halt, parent company says 3/28/2022: METALS-Copper, nickel fall on China's COVID curbs, firm U.S. dollar 3/28/2022: Rusal can’t access alumina from Australia JV as pressure builds |
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| Important Disclosure: Indicative prices are provided for information purposes only, and do not represent a commitment from AEGIS Hedging Solutions LLC ("Aegis") to assist any client to transact at those prices, or at any price, in the future. Aegis makes no guarantee to the accuracy or completeness of such information. Aegis and/or its trading principals do not offer a trading program to clients, nor do they propose guiding or directing a commodity interest account for any client based on any such trading program.
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