SINGAPORE (Reuters) - Commodities trader Trafigura TRAFGF.UL said on Tuesday it is interested in bidding for an exclusive deal to buy zinc from world No. 1 producer Nyrstar (NYR.BR) that may be worth about $700 million a year.
“Trafigura does (have) an interest in bidding for Nyrstar’s zinc contract,” a representative told Reuters in an email.
Trafigura is viewed by market players as the strongest contender among physical trading houses and banks for the deal that has the potential to strengthen a leading trading house’s position or catapult a mid-tier trading house into the big league.
Louis Dreyfus Commodities, one of the world’s biggest agricultural traders, said last month it was also interested in the contract while trading sources also named Traxys.
Glencore (GLEN.L), which had a deal to buy 350,000 tonnes a year of Nyrstar’s European zinc, has had to scrap it to win EU approval for its takeover of Xstrata XTA.L.
Editing by Muralikumar Anantharaman