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ChemSpec Foresees Price Increases for Zinc-Based Products Due to Rising Costs of Zinc on LME

August 19, 2014

By Chris Wagner, Marketing Manager

In an our continual efforts to help our customers understand changing market conditions, we are posting this entry as it concerns notices we are receiving about the rising costs of zinc in the marketplace over past several months.

Enclosed is a chart showing how the price of zinc has increased over the past two years on the London Metal Exchange (LME).  Zinc’s outlook has been boosted due to heavy demand in industrial applications, and because of several mine closures slated for both this year and next. In addition, LME-monitored warehouse inventories have decreased 20% since early spring, 2014.  This is important because it will increase ChemSpec’s pricing on our zinc-based products, beginning this month and potentially for the considerable future. The following product prices will likely be impacted due to these rising costs:

PRODUCT NAME
Zinc Borate 2335
Zinc Oxide CR-4
Zinc Oxide HT-10
Zinc Oxide HT-2C
Zinc Oxide HTA
Zinc Oxide HTR
ZnO Grade 400
ZnO Grade 500
ZnO Grade 800
ZnO Grade 800H
ZnO Grade 800HSA
ZnO Grade 800L

And although we have not yet seen rising prices related to all of these products, we anticipate in the near future to receive price increases, and in turn, we will be forced to pass these costs along to our customers.

Additionally, many of you who use standard grade ZnO, which is an equivalent to our new supplier ZINC OXIDE LLC’s products, have voiced that your ZnO prices have remained relatively steady over the last 12-24 months.  ChemSpec advises you to now begin continually checking on pricing from your other ZnO suppliers, as many of these suppliers have likely been selling-off inventory over the last several months that do not reflect the above price shifts.  But once these suppliers begin to bring-in fresh zinc-based product, they will be forced to increase their sale price(s).

ChemSpec will continue to track rising zinc prices, and will make every effort to inform you as soon as possible on product price changes.  I ask that you not hesitate to contact us with any concerns you may have with these potential price increases, and please feel free to continually monitor zinc pricing changes with ChemSpec moving forward.

 

LME Zinc Chart, July 2014

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