PITTSBURGH, July 10 /PRNewswire-FirstCall/ -- Zinc producer Horsehead Corporation, a wholly owned subsidiary of Horsehead Holding Corp, , today 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 utilize 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. The surcharge will be reviewed and adjusted upward or downward monthly, based on the monthly settlement price for natural gas as reported by NYMEX.
"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."
Horsehead Corporation is a leading U.S. producer of specialty zinc and zinc-based products. Horsehead, headquartered in Pittsburgh, Pa., employs over 1000 people and has six operating locations throughout the U.S. Visit http://www.horsehead.net/ for more information.
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