Metal majors revise rates

The producers of base metals, barring aluminium, have raised their prices by 4 to 7 per cent, with immediate effect, to bring the domestic metal prices in line with the current prices on the London Metal Exchange (LME).

Hindustan Copper (HCL), a public sector copper producer, has raised prices by 5.5 per cent across the board, while zinc and lead manufacturer Hindustan Zinc has cut zinc and lead prices by 4 per cent and 7.36 per cent respectively.

Meanwhile, aluminium companies Nalco and Hindalco have not yet effected any price change, even as they wait for price cues on the LME.

Hindustan Copper settled the final prices of cathode full for July at Rs 352,950 a tonne and cathode cut at Rs 354,450 a tonne. Post-revision, the price of standard cc rod (8 mm) rose to Rs 356,255 a tonne, while the non-standard rod (8mm) surged to Rs 355,855 a tonne. CC rods of 11-16 mm perked up to Rs 357,977 a tonne.

Hindustan Copper fixed the provisional prices of copper cathode full and cut at Rs 335,300 and Rs 336,700 a tonne respectively, while standard and non-standard cc rods of 8 mm were revised upwards to Rs 338,400 a tonne and Rs 338,100 a tonne. CC rod of 11-16 mm has been fixed at Rs 340,100 a tonne.

Copper producers announce the provisional price for the ongoing month, while the final prices are announced at the end of each month, considering the average price movement on the LME, various applicable duties and the demand-supply scenario in the country.

Hindustan Zinc (HZL) too revises its product prices depending upon the LME movement. Any drastic change in LME prices gets reflected immediately on HZL's price change.

Effective August 2, HZL cut its high-grade zinc price by 4 per cent to Rs 163,500 from Rs 170,000 a tonne. With a similar price revision, special high-grade and prime western grade declined to Rs 164,500 a tonne and Rs 161,500 a tonne respectively. The company cut its lead prices by 7.36 per cent to Rs 137,200 from Rs 147,300 a tonne.

Meanwhile, on the LME, lead prices perked up in July by 14.24 per cent to $3,119 from $2,730 following a drastic 17 per cent decline in inventory because of interrupted supplies from smelters. Stocks in the LME-registered warehouses were reported at 37,575 tonnes towards July-end with a further possibility of decline in the weeks ahead.

Copper prices on the LME gained 5.54 per cent to close in July at $8,159 from $7,730.5 in the beginning largely because of continuous an inventory way-out. Copper stocks also receded 9.64 per cent to 101,750 tonnes in July from its peak level of 112,600 tonnes because of disrupted supply from Codelco mines in Chile.

Zinc maintained its momentum and closed at $3,590.5, a rise of 5.59 per cent from $3400.5 in the beginning as the demand from steel galvanising sector shot up. Zinc stocks, too, plunged 9 per cent to end the month at 65,875 tonnes.

Despite around 2 per cent inventory way-in at 838,800 tonnes, aluminium prices managed to record a marginal gain of 0.5 per cent at $2,700.5 from $2,690.5 in the beginning of July.