Major US zinc recycling company Horsehead saw its 2008 zinc production drop by 10,203 tonnes to 28,447 tonnes from 38,650 tonnes in 2007. It said that its primary focus was to conserve cash by managing working capital, limiting investments and reducing operating costs until the market outlook improves. It added that it had taken action to temporarily idle a second smelting furnace at Monaca but would continue to operate its recycling operations with its smallest Waelz kiln and the Beaumont facility idled for the near future.

Horsehead also saw its product shipments decrease to 8,016 tonnes or by 21.1% YoY to 29,966 tonnes for the most recent quarter.

Mr Jim Hensler president & CEO of Horsehead said that "The fourth quarter was unprecedented in the speed in which market conditions deteriorated. Our primary focus during the quarter was to reduce costs and cut operating capacity as the commodity price for zinc and demand for our products and services continued to decline. As a result, we operated the Monaca smelting facility at lower levels, suspended production of zinc oxide made from higher cost feed sources, took an extended outage at our recycling operations over the holiday period and implemented a reduction in our workforce."

Mr Hensler said that the current level of reduced steel output had allowed the company to target steel mills which had historically sent their dust to landfills and that the company's additional capacity at Barnwell, whose completion date had been delayed, would remain essential when steel demand recovers.

Horsehead reported a 26% decrease in electric arc furnace dust receipts as domestic steel production declined approximately 30%.

(Sourced from www.platts.com)