Pasminco

Pasminco's products are sold into 45 countries spanning the core markets of Europe, United States, Australia and Asia. During the year low metal prices on the London Metals Exchange (LME) and depressed market conditions in key Asian markets presented significant challenges for Pasminco. The average realised price for zinc during the year was US$994... , down 17% from the previous year's US$1,192; and for lead it was US$518, down 7.8% from the previous year's US$562. The downturn of metals demand in Pasminco's Asian markets required an expansion of the market base to service a wider spread of geographical markets. This included work to secure new zinc customers for Australian metal in Europe and the USA through Pasminco's Budel Zinc and Clarksville operations respectively, ensuring a fully sold sales book across the Pasminco group. In spite of securing market share growth in a depressed Asian economy, the premiums were under downward pressure during the year. In contrast, premiums achieved in Europe and the USA remained firm. Pasminco consolidated its improved distribution system in Asia with warehouses established in four strategic locations enabling efficient door to door delivery services to our core customers who will now have a shorter lead time and a guarantee of metal availability. Dedicated and cost effective shipping arrangements had been secured to replenish the various warehouses in regular intervals for efficient supply chain management. The Group improved its share of the dry cell battery sector in Indonesia, and gained significant improvements in the galvanised sheet sectors in Malaysia and Taiwan. Pasminco is now starting to see some signs of recovery in the Asian economies, particularly in South Korea, Taiwan (which has continued to be strong through the Asian crisis), and Indonesia which is improving off a low base. In particular, zinc sales to the core Asian markets of Indonesia, Malaysia, Hong Kong/China and Taiwan is estimated to increase by 15% this year with these markets expected to ...Read More