Metalnewsnet 7 Apr :

Reuters reported that Bulgaria's OTZK OTZK BB sees its zinc output dropping 11.2% to 21,500 tonnes this year due to weak demand and raw material shortages.

The smelter also forecast 1.6% drop in its lead production to 21,000 tonnes a year after low metal prices last year forced miners to close operations and tightened the market for concentrates.

The report said that we expect the trend of decreasing metal prices to slow in 2010 but it is still very difficult to forecast the development of the industrial sector. At the same time, we face a limited, shrunk market for delivery of raw materials.

The smelter said that the economic slowdown and low international prices cut its zinc production by 7% last year to 24,198 tonnes and lead output by 10% to 21,336 tonnes. The plant, which exports about 90% of its production, will continue to upgrade its zinc facilities, aiming to raise the capacity to 45,000 tonnes by the end of 2011 and meet EU environmental norms.

The plant is awaiting approval from the environment ministry to start building a new lead plant to increase output capacity.

In January, Bulgaria's KCM said that it plans to boost its production this year, betting on improving market conditions.

2

In tonnes

(Sourced from Reuters)