UPDATE 1-Korea Zinc to cut output by 10 pct for 13 months
reuters.com
Sun Nov 30, 2008 8:05pm EST
SEOUL, Dec 1 (Reuters) - Korea Zinc (010130.KS: Quote, Profile, Research, Stock Buzz), the world's second-biggest zinc refiner, said on Monday it would cut zinc production by 10 percent for 13 months, joining a growing list of rivals slashing output to battle falling prices and weak demand.
Belgium's Nystar (NYR.BR: Quote, Profile, Research, Stock Buzz), the world's top zinc producer, said last week it would cut output by 25,000 tonnes this year and another 130,000 tonnes in the first half of 2009, while global miners curtail output or shelve projects as falling prices squeeze margin and force many to report losses.
About half of the zinc miners in the world are operating at a loss, analysts estimate. [ID:nLA498450]
Korea Zinc, which will reduce output by 45,000 tonnes from its capacity of 450,000 until the end of 2009, said in a statement the decision is subject to changes in accordance to future market conditions.
Zinc, which is primarily used to galvanise steel, is one of the worst performers in the metal complex this year and almost halved to $1,198 a tonne from end-2007, pressured by weakening demand and rising inventory level.
Shares of Korea Zinc fell 2.9 percent to 67,200 won by 0037 GMT, lagging a 1.4 percent drop in the broader market .KS11. (Reporting by Miyoung Kim; Editing By Keiron Henderson) |
