Horsehead Sets Surcharge
07/11/2008 - Horsehead will institute a new energy surcharge on all shipments of zinc oxide effective August 1, 2008.
Horsehead Corp., a wholly owned subsidiary of Horsehead Holding Corp., announced it will institute an energy surcharge on all shipments of zinc oxide effective August 1, 2008.
As a baseline for this surcharge, Horsehead will use the January 2007 through April 2008 average price for natural gas of $7.50/MCF as it appears on NYMEX. For each $1 per mm BTU increase in the NYMEX natural gas price, an energy surcharge of $9.75 a ton will be incurred.
“Until now Horsehead has absorbed dramatic increases to our energy and transportation costs in hopes that prices would return to more normal levels,” said James Totera, Vice President of Sales and Marketing. “Unfortunately, prices continue to rise with no indication the trend will reverse any time soon.”
The company said the surcharge would be reviewed and adjusted upward or downward monthly, based on the monthly settlement price for natural gas as reported by NYMEX.
Horsehead Corp. is a leading U.S. producer of specialty zinc and zinc-based products. Headquartered in Pittsburgh, Pa., Horsehead employs over 1000 people and has six operating locations throughout the U.S.