HZL ups prices for 2nd time this week

For the second time in a week, Hindustan Zinc has raised prices of its products by Rs 4,400 to Rs 1,31,500 a tonne. The previous hike, which was effected on Monday, had seen the prices going up by Rs 4,000 a tonne.

This is the 11th time that the company has increased its product prices this year. The latest hike follows the strong holding of the metal at the LME.

Zinc's run on the LME has lifted it to a premium over aluminium for the first time in about 13 years. Its prices hit a record $2,585 a tonne on Thursday as production softened.

Zinc has climbed over 80 per cent in the past year while LME stocks dwindled to 2,97,375 tonne, the lowest since July 1991.

Analysts are of the opinion that further declines are inevitable. On the LME, zinc closed at $2,571 in the open-outcry session, up 2 per cent over Wednesday's close. of $2,520.

Industry experts point at the tight money supply scenario and depleting inventories as an explanation to the consistent increase in zinc prices.