Hindustan Zinc shares slipped over 2% to an intraday low of Rs 621.45 on the BSE on Monday, extending losses to more than 7% over the last two trading sessions.The decline came as silver prices saw a sharp selloff on MCX, falling over Rs 5,000 per kg amid renewed Iran war tensions and reduced expectations of a rate cut this year. Following the government’s import duty hike, MCX silver has now plunged nearly 13%, or around Rs 40,000 per kg, from its peak of Rs 3.04 lakh in just three trading sessions.A key reason behind the steep correction has been demand destruction at elevated price levels. Unlike gold, silver has a large industrial demand component, with usage spread across sectors such as solar panels, semiconductors, electric vehicles, batteries, electronics, AI infrastructure, and green energy systems.“At the same time, geopolitical tensions linked to the Iran conflict initially triggered safe-haven buying across precious metals. However, markets later began to focus on the potential impact of prolonged elevated oil prices on global growth momentum. That concern tends to affect industrial metals more heavily than pure defensive assets, causing silver to increasingly trade like an industrial commodity rather than a traditional safe-haven hedge,” the analyst said.India, which remains the world’s largest silver importer, could also see weaker domestic demand after the sharp increase in import duty. According to Nirpendra Yadav, Senior Commodity Analyst at Bonanza, the jump in duty to 15% materially raises local prices and may hurt jewellery demand while slowing industrial imports.Hindustan Zinc Q4 snapshotThe company reported a sharp 68% year-on-year rise in consolidated profit after tax for the March quarter at Rs 5,033 crore, compared with Rs 3,003 crore in the corresponding period last year. Revenue from operations climbed 49% to Rs 13,544 crore from Rs 9,087 crore a year earlier.EBITDA for the quarter reached a record Rs 7,747 crore, registering a 61% increase year-on-year. EBITDA margin expanded to an industry-leading 57%, reflecting strong operational efficiency and improved profitability.The company also delivered its strongest-ever quarterly operational performance across several key parameters. Mined metal production touched a record 315 kilotonnes, while refined metal output reached an all-time high of 282 kilotonnes. Hindustan Zinc reported its lowest-ever cost of production at $903 per tonne, improving 9% year-on-year. Silver production stood at 176 tonnes during the quarter, up 11% sequentially.For the full financial year FY26, mined metal production reached a record 1,114 kilotonnes, while refined metal production came in at 1,048 kilotonnes, the second-highest level ever achieved by the company. Zinc production cost declined to a five-year low of $959 per tonne, improving 9% year-on-year.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)