Hind Copper, HZL slash prices

Low prices on the LME force base metals majors to go in for price cuts.

Integrated base metals producers such as Hindustan Copper and Hindustan Zinc have slashed the prices of their products in line with the LME prices.

After a 3 per cent price cut last month, the state-owned Hindustan Copper (HCL) slashed its prices by a further 5 per cent across all product categories for January in line with the falling copper prices on the London Metal Exchange (LME).

Meanwhile, continued price decline on the LME forced domestic zinc major Hindustan Zinc to revise its prices downwards by Rs 3,200 across all categories. High-grade zinc, ex-Udaipur smelter, will now cost Rs 221,500 a tonne.

The company, however, raised lead prices by Rs 1,500 a tonne to Rs 86,300. HCL revises the prices on a monthly basis and sets a benchmark for others "" mainly private sector players "" to follow suit.

With the latest revision effective January 1, the provisional price "" the monthly trading price "" of copper cathode (full) has come down by Rs 17,800 a tonne to Rs 314,600 a tonne, while cathode (cut) will now be quoted at Rs 316,000 a tonne.

CC rods with a diameter of 8 mm will cost Rs 321,100 a tonne, while the price of rods of diameters 11-16 mm has been brought down to Rs 322,900 a tonne.

The company has also slashed the final prices "" the monthly business settlement prices "" for December by 5 per cent. The final price of copper cathode (full) has been slashed to Rs 331,143 (from Rs 351,440 earlier) a tonne while, cathode (cut) has been brought down to Rs 332,643 (Rs 351,440) a tonne.

The prices of cc rods of 8 mm and 11-16 mm diameters will cost Rs 337,991 (Rs 356,811) a tonne and Rs 339,931 (Rs 358,760) a tonne respectively.

HCL, the country's third largest integrated copper producer after Hindalco and Sterlite, revises its products prices on the basis of the average LME copper price for the previous month along with other factors such as transportation, demurrage, the prevailing currency conversion rates, premium, if any, and local taxes.

A huge inventory addition of 26,075 tonne taking the stocks up to 182,800 tonne has pulled down copper prices on the LME by 9.5 per cent in December to the level of $6,290.

Taking cues from the LME, the copper wire bar price in the domestic market dropped to Rs 360 by the end of December from Rs 386 in the beginning of the month. Moving in tandem, copper heavy scrap settled at Rs 332 (Rs 353) a kg, copper utensil scrap at Rs 305 (Rs 320) a kg and sheet cutting at Rs 322 (Rs 345) a kg.

As a general practice, domestic market follows the price trends on the LME. Zinc prices on the LME declined by $200 to $4,331 a tonne in December, giving a headway to the domestic retail market to sell zinc slab at Rs 230 a kg "" a decline of Rs 15 from the beginning of the month.

Although aluminium majors Nalco and Hindalco have not yet decided any price revision for the month owing to a lack of any absolute direction on the LME.

Aluminium prices on the LME maintained a steady upward movement to close at December-end at $2,850 from $2,761 in the beginning of the month. Aluminium ingot in the domestic market also gained Rs 3 to settle the month at Rs 143 a kg.