Hindustan Zinc Limited (HZL), the country's largest zinc producer, has cut prices by 4 per cent across all varieties effective from Saturday to bring them in line with international market. | |
| With the current price revision, high grade zinc is now quoted at Rs 1,71,300 a tonne at ex-Debari smelter, while special high grade has been brought down to Rs 1,72,300 a tonne. Similarly, prime western zinc has been reduced to Rs 1,68,500 a tonne. |
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| In its last revision on May 19, the company had cut zinc prices by 3 per cent mainly because of falling rates on the LME. This is the company's fourth consecutive downward price revision this month, with the first one on May 12. |
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| In contrast, HZL has raised lead prices by 3 per cent to Rs 97,500 a tonne compared to Rs 94,600 a tonne in its last revision on May 19. HZL revises its products prices as and when they face any dramatic change on the LME. |
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| Meanwhile, spot zinc price on the LME nosedived last week to $3,610 on Friday from $3,749.5 on Monday because of profit booking. |
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| Traders preferred to settle down their accounts by making a handsome gain before proceeding on extended leave as trading floors on the LME, Commodity Exchange Inc (COMEX) and New York Mercantile Exchange (NYMEX) would remain closed on Monday on the occasion of Spring Bank Holiday. |
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| Traders who booked their position in early February earned a sum of about $550 a tonne. Zinc inventory during the period under consideration (May 19-29) slumped to 77,500 tonnes from 79,850 tonnes. |
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| The current price decline on the LME is primarily because of the surplus in the global refined zinc metal market due to an increase in Chinese production. Reductions in output in Australia has led to a deficit in refined lead metal. |
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| According to the data released by the International Lead and Zinc Study Group (ILZSG), refined zinc remained in surplus of 84,000 tonnes, while refined lead is in deficit of 38,000 tonnes. |
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| The date further said that zinc usage increased by 7.4 per cent in Europe and was down 2.1 per cent in the US, with a global usage of 2.7 million tonnes for the quarter. Lead usage was down by 4.4 per cent in the US but was offset by gains in Europe of 2.9 per cent. Globally, usage of lead metal touched 92,000 tonnes. |
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| According to Chinese custom data, the country's net exports of refined lead fell by 76 per cent to 35,000 tonnes compared with the first quarter last year. |
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| Mined zinc production is over 100,000 tonnes following increases in China, Mexico, Peru and Portugal. Despite falls in US and Australia lead mine production, global output was up 2.7 pct to almost 900,000 tonnes following gains in China, Peru and Sweden. |
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