Rising zinc prices can bring limited benefits to Hindustan Zinc shares

摘要

Price adjustments in commodity markets can be dramatic. Zinc prices increased to an eight-month high on the London Metal Exchange (LME) this week. For three consecutive years, zinc demand exceeded supply, depleting its inventory. Supplies are projected to rise this year. However, low inventories ahead of the purchase season has triggered an increase in zinc prices. On LME, zinc prices surged 5.6% this week. This calendar year, the price is up 14.8%. Zinc usage is estimated to exceed production this year as well, notwithstanding the demand softness in China.