HOUSTON – U.S. Zinc, a zinc producer owned by Brazilian Votorantim Metais, announced it will increase premiums on zinc oxide and zinc dust effective immediately.

As a result of increases in special high grade (SHG) metal premiums, freight and labor costs, domestic prices on zinc oxide and zinc dust will increase by an average of 8 to 10 percent, representing the first price increase in two years.

U.S. Zinc believes that demand in the second half of 2010 will be very strong. If this is the case, and raw material prices continue to go up, further price increases may be necessary in the final quarter of the year.