Zinc consumption still strong in Asia

The consumption of zinc in Asia (including India) was strong during January-

July 2007 on a y-o-y basis and that's despite higher average price of the metal on the LME.

According to the Portugal-based global industry body, International Lead and Zinc Study Group, zinc consumption in Asia during this period was 3,465,000 tonnes compared with 3,330,000 tonnes between January and July 2007.

This rise in consumption of the non-ferrous metal in Asian region has come despite higher average price of zinc on the London Metal Exchange. For instance, it was $3558.8 a tonne during the period January to July 2007 compared with $2845.4 per tonne in the corresponding period of the previous year, analysts point out.

Zinc is a key input for the galvanised steel industry and is also used in the manufacture of batteries. It currently trades at $2790 a tonne levels on the LME.

The global consumption of zinc amounted to 6,543 ,000 tonnes during the period January to July 2007 as compared to 6,344,000 tonnes in the corresponding period of the previous year, highlighted the industry body.

Hindustan Zinc is one of the key suppliers among domestic players and is expected to exploit this growth in consumption in India and neighbouring countries. In addition, HZL's production (mined metal content) was up 2 per cent y-o-y to 1.34 lakh tonnes in April-June 2007, while its refined zinc output was higher by 13 per cent in the same period.