UPDATE 2-Noble wins stake in Nyrstar zinc marketing deal - sources
* Trafigura, Louis Dreyfus were among other suitors
* Nyrstar likely to sell some of its own zinc
(adds comments, detail on Nyrstar strategy)
SINGAPORE/LONDON, Sept 13 (Reuters) - Trading house Noble has won the right to sell some zinc output from Nyrstar, the world's biggest producer, taking over from Glencore Xtrata a deal worth up to $650 million a year, sources familiar with the situation said.
Around 12 banks and trading firms including traders Trafigura and Louis Dreyfus were in the running to gain rights to sell up to 350,000 tonnes of Nyrstar's zinc.
"Noble have won the Nyrstar zinc metal marketing business- the one which Glencore have to exit," one source said.
Belgium's Nyrstar and Asia-based Noble declined to comment on the matter.
The opportunity to market Nyrstar's zinc had become available because commodity firm Glencore agreed to let go of the deal, which it had signed in 2008, in order to get European Union regulatory approval for its takeover of Xstrata.
Glencore Xstrata will continue to market Nyrstar's commodity grade zinc produced outside of Europe when the deal ends in January.
Nyrstar is also building its marketing and trading team with a view to sell, buy and trade some of its zinc concentrate and zinc metal.
"We are considering selling some of the zinc ourselves," a spokeswoman for the company said.
Nyrstar's senior vice president for marketing Bob Katsiouleris said in a recent interview the firm intends to do so at the request of some of its strategic clients.
The zinc producer has sent a questionnaire to some of its customers asking what price expectations they have should Nyrstar sell them its zinc, a source at a steel firm said.
"Maybe the continuous grade galvanizing (CCG) and the zinc quality for steelworks will be done by Nyrstar directly," the source said.
"They have lost a bit of feeling for the market. If they want to come back to business we expect a lower premium, very simple. Most of the steelworks expect kind of an entry (price) if they really come back."
(Additional reporting by Susan Thomas in London; Editing by Veronica Brown and Elaine Hardcastle)