Polish zinc and lead producer HCM is using a base zinc price of $2,100 per tonne for its 2012 budget, and is also forecasting weaker coke prices as the European steel industry softens. Zinc prices were set at $2,300 per tonne in its 2011 budget, while zinc prices for the year averaged around $2,270 per tonne. The company also forecasts a lead price of $2,200 per tonne, down $200 from the previous year. HCM is confident that prices will rebound moderately from current levels, commercial director Marek Drosik told Metal Bulletin. Three-month official zinc prices were $1,928/28.5 per tonne on Monday, while three-month lead prices settled at $2,025/26 per tonne. While it expects to realise lower zinc prices in 2012, the company is forecasting easier conditions in the forex market and softer coke prices, Drosik said. The US dollar has risen sharply against the Polish zloty in recent months, easing cost pressures for the company as its revenues are primarily in US dollars. The dollar bought 3.391...

Source