HZL jacks up prices by Rs 14,500

In its fourth revision this month, the largest domestic zinc producer Hindustan Zinc (HZL) has raised the selling price of high-grade zinc by Rs 14,500 to Rs 197,900 a tonne.

Earlier this month, the company raised prices by a total of Rs 14,000 a tonne in the first two revisions collectively, while it slashed prices in its third revision by Rs 2,500 a tonne effective from May 22.

With the latest revision, special high-grade zinc is selling at Rs 1,98,100 a tonne, while prime western is quoting at Rs 1,96,100 a tonne.

Mitsui Mining & Smelting Co also raised its zinc selling prices by Y37,000 to Y4,46,000 a tonne, which will bring the estimated average selling price of zinc for May to Y4,35,900 a tonne.

Ex-factory prices are exclusive of excise duty of 16 per cent, central sales tax of 1 per cent or as applicable against 'C' form and without form full CST is applicable, or RST against sales tax declaration form or without form as applicable, company sources said.

Having monopoly in the domestic market, HZL revises prices in tune with the international price movements.

Spot zinc perked up drastically to $3,950 on Tuesday from $3,386 on May 22 and $3,359 on May 2.

The current rise is believed to be due to receding inventory levels to 2,40,675 tonne on Tuesday compared with 2,46,275 tonne on May 22 and 2,58,650 tonne on May 2 on the London Metal Exchange-registered warehouses.

The dramatic fall in inventory levels will perhaps continue as metals on warrant have also declined substantially to 1,66,050 tonne on Tuesday compared with 1,73,550 tonne on May 22 and 1,72,450 tonne on May 2.

According to the World Bureau of Metal Statistics, the zinc market had been in deficit of about 59,000 tonne in the first quarter of this calendar year, with reported stocks lowered by 1,12,000 tonne.

Mine production rose 4.5 per cent to 2.29 million tonne in Q1, with China gaining 1,00,000 tonne. Similarly, refined production increased 3.7 per cent to 2.61 million tonne with China and India jointly contributing an additional 1,27,000 tonne to the world output. However, production in both Europe and America fell 1.3 per cent and 8.1 per cent, respectively, in Q1.

In March, the total world production was 9,01,000 tonne, while demand was for 876,000 tonne.

However, a wider deficit was shown by the International Lead and Zinc Study Group. Production of refined zinc stood at 2.620 million tonne in Q1 this year, up 3.5 per cent in the same period a year ago.

Consumption of refined zinc rose to 2.723 million tonne in the period, up 4.6 per cent on the year. This left the market with a deficit of 1,03,000 tonne.

Zinc consumption during March stood at 9,01,600 tonne, down 11,300 tonne on the month, while output fell marginally, to 861,800 tonnes, down 1,700 tonne from the previous comparable month.