Hindustan Zinc Strategic Priorities and Growth Overview
Solid Portfolio with Strong Growth Fundamentals
Refined Zinc (Zn)
Refined Lead (Pb)
Refined Silver (Ag)
HINDUSTAN ZINC
Zinc & Sver of India
Production volume
7,15,445 tons
Revenue
`13,961 crore
Outlook
Global demand shrunk by 4.6% in CY 2020 due to
pandemic. It is expected to grow by 4.7% in
CY 2021 and 2.3% in CY 2022 and CY 2023.
•
Production volume
2,14,399 tons
Revenue
3,281 crore
Outlook
Demand and production shrunk by 3.6% and
7.4% respectively in CY 2020 and are expected to
grow by 4.5% and 3.6% respectively in CY 2021.
Price per ton is expected to rise from $1,824 in
CY 2020 to $2,055 in CY 2021.
Demand drivers
5G roll-out to boost demand for transmission
towers and Zinc to galvanise bars for
corrosion protection
Shift to renewable energy and Electric Vehicles
(EV) to open potential for zinc batteries as an
emerging technology over lithium variants
Zinc metallization of railway tracks
Galvanized steel in car bodies
Demand drivers
Lead Acid Battery industry, driving 80% of
lead demand, is expected to witness sustained
demand as next generation EVs deploy them
for starting, lighting and ignition SLI battery
applications.
PSPI 161-1
99.
KILDS 38 947
Production volume
706 tons
Revenue
4,378 crore
Outlook
Demand was impacted and production of major
producers dropped significantly in CY 2021.
Physical investments though increased by 27%.
Demand rebound is expected due to low interest
rate and silver credentials. Prices expected to
average $27.30 in CY 2021 with a peak to $32.
Demand drivers
•
Rising consumer confidence
Increased focus and incentive on local
manufacture of solar panels in India will drive
demand of silver paste
Low industrial demand in India compared to
globally
Commodity Super
Cycles to drive
demand of metals
Signs of new commodity
super cycle-a decade-
long period in which
commodities trade above
their long-term price
trend - are evident. Near-
zero interest rates across
developed nations are
fueling pent-up demand
and further contributing to
super cycle. Prices of base
metals, including Zinc and
Lead that have risen on
back of this are to further
rise in CY 2021 and CY 2022.
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