RE:RE:RE:RE:RE:RE:RE:Remember This: Glencore Wants The ZINC & Not TV !!!Some questions....
- Would not zinc miners and smelters try to operate in such a way that the concentrate will be shifted the shortest distance to avoid additional expenses?
- Are all the zinc concentrates the same or do smelters have to tweek their processes based on the concentrate that they are processing?
I thought that as part of the negotiations between miners and smelters both parties will try to find the right partners. Miners need smelters to treat the concentrate and smelters need miners to provide the concentrate. Both of them need to have a guarantee that what they need is satisfied by their counterpart. The result of the negotiations will have spcific miners/smelters signing contracts indicating the conditions for the supply and TCs to be charged.
No having this type of contracts will be risky for both of them since they will have to deal on the spot market... kindoff what is hapenning to Chinese smelters.
I will assume that even those that did not enter into contracts using benchmark prices will still try to deal with partners that are not that far from them to avoid the extract transportation charges.