Zinc buoyant on Asian demand

Zinc consumption continued to remain strong in the Asian region (including India) during January-August 2007 year-on-year, despite higher prices of the non-ferrous metal.

Zinc consumption, during the period, in the region amounted to 3,968,000 tonnes as compared with 3,802,000 tonnes in the corresponding period of the previous year, highlighted Portugal-based global industry body, International Lead and Zinc Study Group.

Zinc is a key input for galvanised steel and is also used in the manufacture of batteries. The key domestic supplier of the metal is Hindustan Zinc.

This strong consumption of zinc has come at a time when its average was $3,520 a tonne on the London Metal Exchange (LME), as compared with $ 2,911.1 a tonne in the January-August period last year.

Zinc currently trades at $2,795 a tonne on LME. Globally, zinc consumption added up to 7,501,000 tonnes during January-August this year, as against 7,250,000 tonnes in the corresponding period of the previous year, the industry body said.

Meanwhile, Hindustan Zinc's production of zinc (refined) was 94,108 tonnes in the September 2007 quarter, as compared with 78,444 tonnes in the quarter last year.