Hindustan Zinc charts path as metal production falls in lockdown impact

With volume growth expected to be soft in FY21, higher base metal prices are crucial for upgrades

Hindustan Zinc's June quarter performance, as anticipated, was impacted by lockdown. Led by lower production days in April and reduced workforce availability due to restrictions, the company's mined metal production fell 5 per cent year-on-year and 19 per cent sequentially to 202,000 tonne.

Softening base metal prices further pulled down the performance. Per tonne zinc prices on the London Metal Exchange (LME) averaged at $1,961 in the quarter, down 29 per cent year-on-year and 8 per cent sequentially. Likewise, lead prices at $1,673 were down 11 per cent year-on-year and 9 per cent sequentially. Though the 8 per cent rupee