U.S. Gulf: Sliding prices from Northwest European smelters were expected to cut the cost of sulfuric acid cargoes delivered to the Gulf of Mexico.
“Prices continue (to be) under pressure,” a source said. “We’re seeing negative sulfuric acid sales prices FOB.”
European cargoes were called as low as (-)$5/mt FOB, pushing Gulf CFR prices to a broad range of $35-$45/mt CFR, down from the previous week’s $45-$50/mt CFR.
Cargoes into Brazil were called $35-$45/mt CFR, and Chilean price ideas were described closer to $45-$60/mt CFR.
Deteriorating commodities prices continue to apply pressure to North American smelters, with Horsehead Holding Corp. becoming the latest entity to show signs of the market’s effects.
Horsehead announced it would temporarily shut down its Mooresboro, N.C., zinc smelter, citing a seven-year low in the price of zinc and resulting cash-flow difficulties. Sources believed the smelter’s closure was unlikely to affect the national market, but could impact a handful of regional consumers.
The $525 million facility produced 2,200 mt of zinc in January.
Prices on the London Metal exchange were mixed at the close of trading on Feb. 17. Aluminum, copper, and nickel prices were higher compared to the week before, while lead and zinc tons were down.
The price of aluminum was $1,520.00/mt, above the previous week’s $1,499.00/mt, and copper closed at $4,562.00/mt, higher than the $4,507.00/mt last reported.
Lead’s $1,750.00/mt closing price was below $1,830.00/mt from a week earlier. Nickel edged higher to $8,240.00/mt from $8,040.00/mt in the prior week, and Zinc stood at $1,664.00/mt, below the week-ago price of $1,712.00/mt.