Base metal majors hike prices

Local producers - except Hindustan Zinc - hike tags across the board.

Amid a volatile market, domestic base metals producers "� except Hindustan Zinc "� have increased prices across all categories.

Following a reversal in the overseas metal prices, aluminium producers "� Hindalco Industries (Hindalco) and National Aluminium Company (Nalco) "� raised prices of their products across all categories by Rs 2,000 a tonne effective July 1. State-run Hindustan Copper (HCL) too increased its product prices by Rs 9,000 a tonne across all segments within a week of its 10 per cent downward price revision.

Tata Steel also hiked prices of hot-rolled coil products by Rs 500-700 a tonne on July 1; the prices were hiked only for spot customers. It sells 20-25 per cent of its hot-rolled products to spot and non-contract customers. The company reviews hot rolled coil prices on a monthly basis.

Uttam Galva Steels on Monday hiked prices of cold-rolled products by Rs 1,000-2,500 a tonne for contracted customers. However, prices of galvanised products have been left untouched.

The company sells about 60-80 per cent of its domestic cold-rolled output through long-term contracts. About 30 per cent of its total output of 50,000 tonne is cold-rolled products.

JSW Steel too hiked prices of hot-rolled products by Rs 750 a tonne, on Monday. It, however, left prices of galvanised products untouched. The company currently charges around Rs 26,000 a tonne for hot-rolled coil products and about Rs 33,000 a tonne for galvanised products.

However, Sterlite-managed zinc producer Hindustan Zinc (HZL) slashed prices by Rs 2,300 effective July 1. Prices of zinc, a key input in galvanised steel, have fallen over the month, but prices of hot-rolled products have risen.

Despite an estimate of 92,000 tonne deficit to 3.502 million tonne of zinc between January and April, prices of the metal slumped on the London Metal Exchange (LME), which forced HZL to bring down the price of high-grade zinc to Rs 1,66,200 a tonne (ex-Rajasthan). HZL is now offering special rebate of Rs 1,000 a tonne for lifting over 10 tonne from anywhere in the country.

With the current price revision, Nalco is selling aluminium ingot at Rs 1,25,250 a tonne, while aluminium wire rods are quoting at Rs 1,33,750 a tonne. The provisional price of copper 8 mm rod shot up to Rs 3,65,700 (Rs 356,700) and of 11 mm, 12 mm,15 mm rods perked up to Rs 3,67,600 a tonne (Rs 3,58,600).

Moving in tandem, cathode full and cut provisionally surged to Rs 3,60,000 (Rs 3,51,000) and Rs 3,61,400 (Rs 3,52,500) a tonne, respectively. Copper wire bar has been revised upwards to Rs 3,66,900 a tonne (Rs 3,57,900).

Excise duty, education cess, sales tax, octroi and other statutory levies will be charged extra from the customer as applicable.

According to International Lead & Zinc Study Group, production and consumption of refined zinc went up 3 per cent this year through April to 3.502 million tonne and 3.594 million tonne, respectively.

However, the World Bureau of Metal Statistics projects a deficit of 49,000 tonne in the first four months of the current calendar year.

The global zinc market will remain fundamentally supported till 2008, with a shortage of concentrate output leading to closure of some smelters, an analyst said.