Asian Metal meets Nyrstar

On the 7th October 2013, Nyrstar Global Product Manager Marcello Cabras met in London with Scott Yarham, Minor Metals Analyst for Asian Metal, to discuss the current minor metal market situation and what his thoughts were for the remainder of the year.

Nyrstar is an integrated mining and metals business, with a core focus on the zinc and lead markets. However they are continually growing their position in other base and minor metals. Nyrstar has mining, smelting, and other operations located in Europe, the Americas, China and Australia and employs over 7,000 people. Nyrstar is incorporated in Belgium and has its corporate office in Switzerland. Nyrstar is listed on NYSE Euronext Brussels under the symbol NYR.

The discussion was focused on the minor metal market specifically products of Nyrstar such as indium, germanium, gallium and tellurium. The discussion initially focused on the fact that most of these markets were experience a rather soft demand in Europe. It was discussed how the demand for indium specifically in the infrared market was weak at the present time, predominantly stemming from the cuts being witnessed in military budgets for projects and operations. Both gallium and tellurium are markets in which he claimed are extremely quiet and prices have remained unchanged for a long period of time. He expressed that he does not feel that there is much hope for either of these markets picking up any interest or experiencing any major change before the end of the year.

The main focus of the conversation was the current indium 99.99%min market and where he thought that market was heading. It was discussed that the Fanya exchange is currently holding around 1,600 tonnes of material of which he believes is the biggest motivator of prices being firm at such a high level. He explained that demand in Europe was not as strong as he predicted however his feeling is that material is fairly tight and Chinese suppliers are confident at the moment therefore unwilling to drop their prices. He forecast prices will continue to appreciate moving forward into Q4.

Marcello thanked Asian Metal and Scott for maintaining regular contact over the months and providing interesting and valuable information. Both Scott and Marcello agreed future cooperation between the two companies will be fruitful and beneficial to both.