India may export zinc for the 1st time

India may export the metal for the first time in 2006 as new production capacities are being set up.

India, a net importer of zinc in recent years, may export the metal for the first time in 2006 as new production capacities are being set up to grab a share of the metals boom, a senior industry official said.

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"India will probably have some surplus this year to export," said Sushil Bhatter, chief executive officer of Binani Industries Limited, which owns Binani Zinc, India's second-largest producer of the metal.

Traders said new capacity planned at India's top zinc producer, Hindustan Zinc Ltd, a unit of London-listed Vedanta Resources Plc, would help to create some surplus in the domestic market this year.

"Domestic demand is growing but the capacity growth planned this year will be at a faster pace," Bhatter said.

Three-month zinc on the London Metal Exchange hit a record high of $2,335 on Tuesday. The metal has gained about 20 per cent this month.