Friday, October 07, 2005 ZINC miners look set to enjoy a strong 2006 with treatment charges forecast to fall to a another record low.
Treatment charges, which are the fees charged to miners by metal smelters and refiners, are a pointer to supply levels of concentrate. They fall when supplies of material from miners is short.
The latest forecast of treatment charges shows prices for 2006 ranging from $US95 a tonne to $US110/t, substantially below this year's figure of around $US125/lb, and down even further of the $US140/t charged in 2004.
According to a Dow Jones report, negotiations on next year's treatment charges have started in the lead up to the annual "metals week" gathering in London later this year.
If, as expected, the treatment charges come in at a record low it will be seen as a strong pointer to higher zinc metal prices next year because of the shortage of material for processing.
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