Hindustan Zinc cuts prices for fifth time in 2 weeks

Hindustan Zinc, India's largest producer of the metal, cut prices for the fifth time in two weeks to match declines in global rates. Its shares fell.

The price of zinc was lowered by Rs 3,000 ($68) a metric tonne to Rs 1.73 lakh, the Udaipur-based company said in an e-mailed statement on February 3, without giving a reason. The new prices came into effect from the same day. The company last cut zinc prices on February 1.

Prices of the metal for three-month delivery have fallen 27 per cent this year on the London Metal Exchange on concern sparked when China, the world's biggest user, became a net exporter of the metal last year. The increased supply may depress prices. Zinc more than doubled in 2006.

Hindustan zinc shares, which have fallen more than 20 per cent this year, fell as much as 7 per cent to Rs 645 on the Bombay Stock Exchange and traded at Rs 657.05 at 10:19 am in Mumbai.The price of lead was lowered by Rs 100 a tonne to Rs 85,800, according to the statement.