Hindustan Zinc and Binani Industries, the two primary zinc producers, have witnessed a sharp jump in their stock prices in the last almost four months beginning July.
The share price of Hindustan Zinc appreciated today to Rs 82.95 from Rs 34.95 on July 1. Similarly, the stock price of Binani Industries also gained from Rs 17.65 to Rs 19.25 today. On the London Metal Exchange (LME), spot price of zinc moved to a 28 month high crossing $895 a tonne.
Hindustan Zinc and Binani Industries, the two primary zinc producers, with production capacities of 1.49 lakh tonnes and 30,000 tonnes, cater to the domestic demand of 2.50 lakh-2.75 lakh tonnes.
With aggregate production levels of 1,96,163 tonnes (1,45,796 tonnes by Hindustan Zinc and 50,367 tonnes by Binani Industries), these two producers catered to 70-75 per cent of the domestic demand.
Besides the steel galvanising steel industry, dry cell manufacturers are the key customers of the zinc industry. Users may be at the receiving end as zinc prices have zoomed up at current levels. Expectations of further rise may lead to increase in input costs for these companies.
Stock price of dry cell manufacturers have more or less remained steady with minor gains in the last three months despite a broad market rally.
Eveready Industries has gained from Rs 22.90 to Rs 25.90, Indo National has marginally improved from Rs 340.90 to Rs 350.00, Matsushita has increased from Rs 44.95 to Rs 48.55 and Shervani Industries has gained from Rs 21.00 to Rs 28.60.
