Commodities trader Traxys has announced plans to exit the North American lead and zinc trading business by the end of this year.
Citing “deteriorating credit coverage,” to trade in lead and zinc, Traxys’ president and chief executive officer, Mark Kristoff, said in a media statement that the trader was planning to exit the two business segments by phasing itself out over the next six months.
The announcement also puts to rest recent speculation that Traxys planned to exit all of its base metals businesses in North America. The company indicated it will continue its other base metals activities in the region and globally, including its lead and zinc concentrates trading, along with aluminum, copper, nickel, and tin metals and concentrates businesses.
The company plans to honor all of its existing commitments to both metal segments it’s exiting, it noted in the statement.
Traxys is a global commodities trader and reported annual revenue of over $6bn last year. The company also deals in sourcing, marketing and distribution of ferrous and non-ferrous metals through its 20 global offices.