Volcan zinc, lead, copper concentrates last 2012 tender

Volcan Compañía Minera S.A.A. concluded the third and last tender of year 2012 for the sale of 150,000 wmt of zinc concentrates, 25,000 wmt of lead concentrates and 25,000 wmt of copper concentrates for deliveries in years 2013, 2014 and 2015. Amid increasing concern over China's lower concentrate import volumes and stock growth, the demand for this tender was outstanding considering the general comment about concentrate markets received from...

Volcan Compañía Minera S.A.A. concluded the third and last tender of year 2012 for the sale of 150,000 wmt of zinc concentrates, 25,000 wmt of lead concentrates and 25,000 wmt of copper concentrates for deliveries in years 2013, 2014 and 2015. Amid increasing concern over China's lower concentrate import volumes and stock growth, the demand for this tender was outstanding considering the general comment about concentrate markets received from last Antaike Conference in China. Terms offered by different parties were very competitive and made the tender process last longer than initially expected. Additional to comments about situation in China, gossip during the tender remarked the fact of apparent high stocks of concentrates in Callao port. However, this unusual higher level of stocks at warehouses in this port is more related to poor loading and warehousing conditions in that location that generate huge vessel congestion, causing a much higher average level on stocks. At the end, the tender ended awarding zinc tonnages to multiple companies at levels from low 30's to low 60's depending on year and quality. Incoterm applicable was CIF Main Asian Port at current base price levels. On the lead side, a stronger demand was seen for silvery material prompting an important decrease in silver RCs closer to USD 1.00 per ounce. Mixed messages have been quoted regarding concentrates markets in the last months. However, despite bearish view of comments on the zinc side, demand continues being strong, entering a new stage of time where production cuts will lead the way of TCs.

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