HZL ups prices afresh by Rs 2300

Rising zinc prices in the international market has prompted integrated producers like Hindustan Zinc to raise selling prices for the second time in five days. The largest producer of the country has raised prices by Rs 2,300 across all products effective from Wednesday.

With the present rise, ex-Debari/Chanderia special high grade zinc is quoted at Rs 1,42,700 per tonne as against Rs 1,40,400 per tonne in the last revision.

Similarly CGG alloy perked up to Rs 1,44,500 per tonne compared with Rs 1,42,200 per tonne in the last revision. High grade zinc jumped to Rs 1,42,500 per tonne (Rs 1,40,200) while that of prime western is now quoted at Rs 1,40,700 (Rs 1,38,400) per tonne.

This is the 13th price revision so far this year reflecting the volatility in the international market.

"Another hike by the company can not be ruled out as zinc price on the LME touched an all time high of $2,800 on Wednesday. The company would surely take a note of that and make another revision very soon. Whenever zinc price on the LME jumps, Hindustan Zinc follows suit," a trader said.

Zinc prices on the LME surged to $2,800 in early trade of Wednesday, gaining $73 in just three working sessions.

A dramatic fall in inventories and temporary shut down of Mt Garnet zinc processing unit of Australia's Kagara Zinc are mainly attributed to the sudden rise in prices on the LME.

LME registered a total 4,275 tonne of inventory decline to 2,76,325 tonne from 2,80,600 tonne in the last three days.

Meanwhile, production and consumption estimates of the International Lead and Zinc Study Group (ILZSG) has no bearings on the movement of this metal on the LME as markets are controlled only by speculators.

According to ILZSG, refined zinc production stood at 8,80,000 tonne in January 2006, up from 8,30,000 tonne in the same period a year earlier. January zinc production is 12,700 tonne lower than the December output.