Glencore will pay US$9.85 million to resolve antitrust claims over its alleged scheme to fix the price of zinc by rigging warehouse storage queues and manipulating the complex relationship between the physical and financial metals markets, according to a federal court filing in Manhattan.
The proposed settlement, which requires the approval of Judge Paul A. Engelmayer, would conclude class action litigation against Glencore in the US District Court for the Southern District of New York, where the case has been advancing in fits and starts since 2014.
Zinc purchasers accused U.S.-based Glencore Ltd and Pacorini Metals USA Inc of conspiring from September 2010 to February 2016 to ensure long queues for physical zinc, or Special High Grade zinc, at warehouses licensed by the London Metal Exchange.
They said this allowed Glencore to receive higher storage fees and command increased premiums when selling zinc.
Zinc is used to coat steel to protect against corrosion and is also used in batteries, castings and alloys such as brass.
The U.S. Geological Survey said zinc accounted for 7% of the country’s $28.1 billion of metal mine production in 2019, trailing only gold, copper and iron ore.
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