- Demand weakens amid sluggish galvanising activity
- Limited scrap availability helps keep prices stable
India’s zinc scrap and dross prices remained range-bound w-o-w this week. BigMint assessed zinc diecast scrap from the Middle East at $2,135/tonne (t) CFR west coast India, down by a slight $5/t w-o-w.
At the time of reporting, London Metal Exchange (LME) zinc prices stood at $2,710/t, down by $68/t from $2,778/t last week.
Zinc dross was assessed at INR 220,000/t ex-Delhi, up marginally by INR 2,000/t w-o-w, according to a buyer who spoke with BigMint.
Market highlights
Domestic demand remained weak as galvanising activity slowed due to seasonal rainfall, and many secondary producers cited muted end-user demand. Meanwhile, scrap supply – particularly clean dross and high-purity ash – remained tight. Producers of zinc oxide for the rubber and ceramics sectors noted difficulty in sourcing quality feedstock, which helped stabilise prices.
“Demand is very slow right now, and with ingot prices still range-bound, there is no incentive for processors to stock aggressively,” said a scrap dealer in Ludhiana.
“Only oxide units with steady export contracts are buying, but even they are cautious. It is a tight liquidity environment,” said a buyer from Uttar Pradesh.
Market participants noted that demand from zinc oxide manufacturers and secondary smelters was slow, driven by lean monsoon operations and cash flow constraints. Zinc oxide (99% Zn) remained unchanged at INR 213,000-214,000/t ex-Delhi.
In North India, big-sized zinc scrap (tukdi, 97% Zn) was offered at INR 217,000/t ex-Delhi, while buying interest for mid-sized material (tukdi, 97-98% Zn) was heard at INR 196,000-200,000/t, largely unchanged from last week.
Last week, zinc scrap offers from the Middle East were heard at $2,135-2,145/t CFR west coast. A seller confirmed that 2-3 containers of zinc scrap (2-3% attachment, Indonesia origin) were booked at $2,325/t CNF Mundra.
Outlook
Zinc scrap prices are expected to remain largely range-bound in the near term. Supply chain issues, freight delays, and slow downstream consumption are likely to cap any significant upside. Buyers are expected to remain conservative amid uncertain macroeconomic and seasonal conditions.
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