Network Metals LLC

Things are starting to brew in the physical zinc business in China. We are seeing an increase in inquires from traders for zinc metal for delivery to Chinese ports. In addition, Chinese smelters are now charging higher treatment charges to mines to process their concentrates. Treatment charges were $80/mt in April and they are now being quoted at $130/mt. As we have discussed in the past, global zinc production was cut back dramatically when prices collapsed end 2008. While other LME metal prices may be ‘over-cooked’, zinc has steady fundamentals. We will keep you closely advised.