Levy to be charged on October invoices using above price.
Zinc Purchase Price - AUD$4,452
Levy to be charged on July invoices using above price.
Zinc Purchase Price - AUD$4,603
Levy to be charged on August invoices using above price.
Zinc Purchase Price - AUD$4,433
Levy to be charged on September invoices using above price.
Over the past 18 months the global demand for zinc has outstripped supply by record high levels causing the price of zinc to go through the roof. The price has increased by a staggering 66.6% from AUD$2,486 per tonne (FIS) in January 2016 to AUD$4,142 per tonne (FIS) in September 2017.
I’m sure you’ll appreciate the difficulties in trying to manage a business when the cost of your primary raw material rises significantly every month. Although we have been doing everything possible to absorb these increases whist trying to remain competitive, we have regrettably reached a point where this is no longer sustainable.
We believe the fairest method of dealing with these increases is by the introduction of a transparent surcharge linked directly to the price of zinc, which you are able to track at any time via our web site www.mgalv.com.au or the official London Metal Exchange (LME) website www.lme.com.
This surcharge became effective on 1st October 2017 and will be displayed on your invoice as “Zinc Levy”.
We have done our very best to ensure the levy has the smallest possible impact on your business so please do not hesitate to contact Andre Meneghello or Scott Lawson if you have any questions or wish to discuss the structure of the zinc levy in any way.
7 September 2017