Hindustan Zinc: Trade war concerns may keep base metal prices volatile

Hindustan Zinc saw an unusually weak June quarter, affected by lower-than-expected production and sequential decline in base metal prices. 

With the company gradually ramping up production, volumes are expected to pick up pace in the second half of the current fiscal. 

Metal production in the June quarter fell by 9 per cent year-on-year and 17 per cent, sequentially after closure of open-cast mining. Consequently, fixed costs were spread over lower production, which along with higher coal, diesel prices and wages compounded per tonne costs, thereby affecting profitability.  

The cost of production (COP) at Rs 69,907 ($1,043) increased 11 per cent year-on-year and 17