VOLCAN COMPAÑIA MINERA : Volcan zinc, lead, copper concentrates last 2012 tender

  VOLCAN COMPAÑIA MINERA : 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  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  materialprompting 
animportant 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 bearishview 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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Source: VOLCAN COMPAÑIA MINERA via Thomson Reuters ONE
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