Metal firms up prices in line with global trend

HZL ups prices by Rs 3,600; Hindalco, Nalco raise by Rs 4,000.

Hindustan Zinc Ltd, the largest zinc producer in the country, has raised high grade zinc prices by Rs 3,600 to Rs 1,60,700 a tonne from Rs 1,57,100 a tonne in the last revision on April 12. On April 1 prices were hiked to Rs 1,40,200 a tonne. The is the fifth occasion in a month that the company has raised prices.

Product prices have been raised by 15 per cent in the last fortnight mainly due to rising zinc prices on the London Metal Exchange.

Traders said the company wants to move in line with the international market and rising prices overseas has prompted an upward revision of prices.

Surprisingly, zinc prices on the LME shot up by $358 to an all-time high of $3,085 a tonne owing to speculative buying by traders and funds.

The price rise in the international market is partly attributed to declining inventories in the last fortnight to 2,73,225 tonne from 2,80,600 tonne on April 3. Rising demand and diminishing supply have also contributed to the already rising prices.

The private sector Hindalco Industries also raised its products prices by Rs 4,000 a tonne across all categories with effect from April 16. For extrusion the change would be applicable from April 17. The company has raised prices for the second time this month, with prices being hiked by Rs 5,000 on April 1.

The company spokeswoman said, "We have revised prices in line with price movement in the international market."

Public sector National Aluminium Company Ltd (Nalco) has also perked up primary metal product prices by approximately Rs 4,000 a tonne. In the current revision, prices of rolled products have also been raised by around 2,500 per tonne. All price revisions are effective from April 16.

This is the second time Nalco has hiked aluminium prices this month.

Meanwhile, aluminium and copper prices on the LME surged by $97 a tonne and $649 a tonne to $2,571 and $6,210 respectively. Inventories of these metals declined by 26,000 tonne and 9,025 tonne to 7,49,900 tonne and 1,11,650 tonne respectively.

The copper producer Hindustan Copper Ltd had raised its financial arrangement in the mid month in order to safeguard it from the anticipated losses.

Financial arrangement is the fixed price, much higher than the provisional price, collected from buyers to protect the company for any financial losses in case the final prices are announced higher than anticipation.