Nyrstar's Auby zinc plant on care and maintenance until further notice (updated)

Nyrstar NV

07/12/2022 12:22

(Updates with Nystar's comment on decision)
       LONDON, Dec 7 (Reuters) - Nyrstar  NYR.BR  has completed
scheduled maintenance work at its Auby operation in Northern
France, but the smelter will not resume zinc production due to
challenging market conditions, the     Nyrstar did not specify
the challenges.
    The Belgium-listed company said the decision was based on
the latest power price outlook and inflation across a range of
input costs impacting the business.
        High power prices have spurred suspensions and cutbacks
by smelters throughout Europe.
    "The plant will now be placed on care and maintenance until
further notice," Nyrstar said. 
    "This period will be used to bring forward future planned
investments to improve operational stability and efficiency of
the Auby smelter once operations are able to restart."
    Nyrstar put its zinc smelting operations at Budel in the
Netherlands on care and maintenance in September.
    Metal industry sources say Nyrstar has the capacity to
produce 720,000 tonnes of zinc in Europe, with 315,000 of that
at Budel.
    Europe accounts for around 15% of global supplies of zinc
estimated at about 14 million tonnes this year.
    Benchmark zinc prices  CMZN3  on the London Metal Exchange
hit a record high of $4,896 a tonne in March on worries about
shortages, but have since dropped 36% to around $3,125 a tonne
as growth and demand slowed.
 (Reporting by Pratima Desai; Editing by Louise Heavens)
 ((pratima.desai@thomsonreuters.com; +44 207 513 5681;))