Zinc – the fourth most consumed metal worldwide after iron, aluminium and copper is witnessing an uptrend with a four per cent week-on-week increase in global prices. There has been a similar hike in India, too. Zinc cash prices in the LME was at $3,896 per tonne up 4% and the three month contract price was up over 3% between May 25 and June 1 to $3,864.50 per tonne.
Lower stock positions across London Metal Exchange (LME) depository continue to be among the major reasons which have led to a northbound price movement of the non-ferrous metal. European mills are also managing consumption as high energy prices continue to be a concern there.
According to Rahul Sharma, Director India, International Zinc Association, Geo-political issues continue to have an impact leading to high volatility in prices. “Long term corrections are evident. But at the moment, there will be some volatility which will continue through the short term,” he added.
In India, the country’s biggest zinc producer, Hindustan Zinc – a Vedanta subsidiary – has increased prices of special high grade zinc boom prices by four per cent odd across Jodhpur auctions to approximately $4,558 per tonne on June 2 versus $4,378 in May.