Hindustan Zinc jacks up prices

Hindustan Zinc Ltd, the largest zinc and lead producer in the country, has raised zinc selling prices by Rs 4,200 per metric tonne, or 3.9 per cent, across all varieties. With this, the price of the becnmark high grade (ex-Debarihanderia) has touched Rs 111,300 per tonne.

The revision was expected as zinc rallied by $132.5 to hit to $2044.5 on the LME during the first fortnight of this month. Meanwhile, the stock pile of the metal also declined to 386,100 tonne, a drop of 7,450 tonne during the period under consideration.

With this, the company, which revises price every fortnight, has raised its selling prices by Rs 18,900 per tonne or by more than 20 per cent in a short span of two months. The prices of the benchmark grade were at Rs 92,400 per tonne on November 16.

However, the latest price hike is lower than the price quoted on the LME. This is because of the continuous decline of the dollar against the rupee.

There are unconfirmed reports that the company has cut lead prices by Rs 2,000 per tonne to Rs 58,600. However, the company denied any such developments. "No decision on lead price revision has been taken as yet," a company official said.

These prices are exclusive of the 16 per cent excise duty, one per cent central sales tax or as applicable for zinc and lead etc.

Recently, zinc and lead vaulted to all-time highs on the LME triggered by fund buying. LME three-month zinc, tipped by analysts as the LME's star performer in 2006, surged above the $2,000 a metric tonne for the first time since 1989.

A section of the traders believe that analysts have underestimated the strength of the zinc market. The rally in zinc and lead was mainly attributed to an impending strike at Volcan Compania Minera SAA, a major zinc producer in Peru.