The Hindu Business Line : Zinc price hike in line with global trend: HZL

Hindustan Zinc has increased zinc prices by Rs 1,600 per tonne, and has cut lead prices by Rs 100 per tonne. Director-Corporate Strategy at Hindustan Zinc, Mr Dhanpal Jhaveri says that they have hiked the price of zinc keeping in line with the international trend.

According to him, zinc prices will remain robust in the medium-term.

Prices have gone up by Rs 1,500 per tonne since the Budget.

Excerpts from CNBC-TV18's interview with Mr Dhanpal Jhaveri:

Take us through why you have raised prices and net-net what is the change in prices since the Budget.

Our pricing strategy is based on trends, which we see emerging in the international prices for zinc.

Clearly the current change, or modification in the prices is part of that trend. We are seeing that in the last few days zinc prices have improved.

To reflect the improvement in prices we have also modified the prices to our customers in India.

Since the Budget what would the net change be?

The recent price change would reflect around Rs 1,500 per tonne.

What is the sense you are getting, will there be another price hike to come within this month or next month, given the international trends you are looking at?

We try and see that our prices in India reflect the international prices. While in the short term it is difficult to predict, I think in the medium term prices will remain robust.

About lead price cut:

That again has to reflect in the trends we are seeing in the international prices.

Can you give us some sense of sensitivity to earnings? What could be the contribution to the operating bottom line?

That is a difficult question to answer immediately. But this is the second price hike since the last one month from Hindustan Zinc.