Metalnewsnet 5 May:

 Belgium's Nyrstar NV, the world's largest zinc producer, has settled the majority of zinc and lead treatment charges (TCs) for 2010.

The base TC for zinc will be $250 a dry metric ton at a basis zinc price of $2,000 a tonne, the company said, a 22.5-percent increase from last year's base TC of $204 at a basis zinc price of $1,250 a tonne. The higher base TC this year could be attributed to the fact that smelters are capturing in 2010 about 36 percent of the total zinc value, as opposed to 42 percent last year, Nyrstar said.

To respond to possible fluctuations in the zinc price, Nyrstar has agreed to escalators of 5 percent if zinc climbs above $2,000 a tonne and 9 percent if it gets higher than $2,500 a tonne. On the downside, the company has put in place a de-escalator of 6 percent for zinc prices below $2,000 a tonne.

Nyrstar has settled most lead TCs for 2010 at about $230 a dry metric ton, a 27.8-percent increase from $180 last year. The lead charges do not include escalators.

Some outstanding deliveries will be processed in 2010 at last year's rates, the company said, but "these are not expected to have a material impact on treatment charge income."

On April 30, the last trading day before Monday's bank holiday in Britain, three-month zinc closed second-ring trade on the London Metal Exchange at $2,280.50 a tonne, and lead ended at $2,208 a tonne.