Hindustan Zinc well placed with rising volumes, supply situation

Shortage seen offsetting price volatility due to trade war

Though the broader markets have been under pressure, Hindustan Zinc continues to gain and has bounced back 13.8 per cent from its July lows. While trade war concerns have led to volatility in base metal prices, what offers comfort is the outlook for zinc given the supply shortages.

Further, while it posted softer volumes in the June quarter, there has been a recovery and analysts expect a better second half. The firm is on track to achieve a 1.2 million tonnes per annum (MTPA) run-rate by the end of FY19, as compared to 0.94 MTPA in FY18. It is further