Japan: Mitsui to raise electric zinc prices to record highs

Mitsui Mining & Smelting Co. Ltd. announced on 14 Apr'22 that it would raise the price of electric zinc by JPY 30,000/t ($237/t) to JPY 628,000/t ($4,965/t). Electric zinc prices have breached the record high of JPY 600,000/t ($4,744/t) for the first time.

The average price in April was JPY 609,600/t ($4,820/t), as per Japan Metal Daily. The London Metal Exchange (LME) zinc market has been rising due to tight supply and high demand, while other base metals are not getting the adequete push due to the economic stagnation in China amid rising COVID-19 cases and lockdowns.

The official LME price on 13 April was $4,515/t, up $170 from the previous day. It increased by 5.5% since the last revision. LME inventory increased due to warrants cancellation (waiting for shipment) and a decrease in available inventory.

Zinc inventories announced by the LME on 13 April have decreased by 14.4% from the beginning of the month to 117,850 t, of which cancelled warrants are 61%, more than half.

In addition, high energy costs in Europe continue to support zinc prices amid supply concerns.

The exchange rate (TTS) reached the JPY 126 ($1/t) level. At the beginning of the previous month, it was in the JPY116 ($0.9/t) range, and the JPY depreciated while the USD has strengthened significantly in about a month.

This article has been published under an exchange agreement between Japan Metal Daily and SteelMint.