HZL may cut product prices soon

Hindustan Zinc (HZL), the largest domestic zinc producer, may soon slash its product prices in the local market, as the prices have started falling in the international market.

If it happens, it will be in quick succession to the company raising its product prices by Rs 700 a tonne across all categories, effective from Saturday, even though a trend of falling prices was in sight.

Post-revision, the benchmark high-grade zinc is quoting at Rs 1,93,600 a tonne, while the special high-grade is selling at Rs 1,94,100 and prime western zinc at Rs 1,91,100.

In its previous revision last Thursday, the company raised the price of the benchmark high grade by a significant 6 per cent to Rs 1,93,200 a tonne.

Ex-factory or stock-point prices are exclusive of excise duty of 16 per cent and central sales tax of 1 per cent or as applicable in zinc.

As in most of the times, this upward revision, too, is mainly attributed to rising domestic demand and estimated supply shortage due to output cut by leading global producers.

Amid falling inventory, the zinc price on the London Metal Exchange (LME) recorded a slump of $190 to $3,250 a tonne on Wednesday from $3,440 a tonne on September 1.

Zinc inventory, too, on LME's registered warehouses recorded a slump of 12,700 tonne to settle at 1,59,800 tonne on Wednesday from 1,72,500 tonne on September 1.

HZL has a special offer in its basket for bulk consumers. For procuring more than 9 tonne of zinc in the calendar month on the declared HZL price list, a special discount of Rs 1,500 a tonne will be given at the end of the month on the total quantity, subject to minimum lifting of 9 tonne.