- Monsoon continues to limit spot supply, dispatches
- HZL lifts ingot offers amid slightly firmer LME prices
India’s zinc ingot (99.995%) prices inched up by INR 2,000/tonne (t) w-o-w to INR 275,000/t ex-Delhi, as per BigMint’s assessment. Gains were limited by a period of range-bound demand, despite price hikes from domestic producers and healthy premiums in the import market.
On 28 July 2025, Hindustan Zinc Limited (HZL) increased its zinc ingot prices by INR 900/t ($10/t) to INR 288,300/t ($3,332/t) ex-Chanderiya, following movements on the London Metal Exchange (LME). Lead ingot prices were also revised up by INR 2,100/t to INR 207,100/t ($2,388/t).
Traders stated that Special High Grade (SHG) zinc ingots were offered at INR 268,000/t ex-Mumbai, up marginally from last week. HZL’s price revisions came amid slightly firmer LME zinc levels, but real demand from key sectors remained relatively tepid. The ongoing monsoon continued to disrupt mining and transport schedules, limiting spot availability and affecting producer dispatches.
Import market activity remained constrained, as buyers held back amid regulatory uncertainty. Australian-origin zinc ingots were quoted at a premium of $350/t over LME at CFR Mundra Port, though traders highlighted limited bookings beyond 15 September 2025 due to BIS certification issues.
In north India, constrained supply and grade premiums kept Australian zinc firm w-o-w at INR 297,000-298,000/t ex-Delhi. Traders also noted that domestic premiums on zinc ingots via MCX contracts hovered within INR 5-7/kilogram (kg) over spot, depending on liquidity and location.
Market commentary
“Imports are slowing as the BIS cut-off looms, and that is likely to push some demand toward domestic units, though buyers are still cautious,” said a Delhi-based trader.
“Most buyers are waiting for clarity post-mid-September. Until then, they are keeping inventory lean,” noted a west India-based importer.
Global zinc futures snapshot
As of 29 July, LME 3-month zinc traded at around $2,795/t, down by approximately $35/t from the previous week’s close, reflecting a marginal decline in line with subdued global sentiment. On the Shanghai Futures Exchange (SHFE), the August zinc contract settled at around RMB 22,715/t, registering a slight drop of RMB 170/t w-o-w, amid weak Chinese demand and rising inventory levels. In India, the MCX zinc August futures continued to hover in the INR 268,000-270,000/t range, with minimal movement and weak participation, as traders stayed cautious and avoided aggressive positions in the absence of strong domestic buying cues.
Korea Zinc tied to US-South Korea tariff talks
As US-South Korea tariff talks near their deadline, Korea Zinc is being considered as a key player in strengthening supply chains. The company may invest up to 2 trillion won in a US smelter, aligning with US goals to reduce reliance on China. Its recent $85 million stake in The Metals Company further signals Korea Zinc’s role in securing critical minerals such as nickel and cobalt through ocean mining.
Outlook
The Indian zinc market remains cautious, with limited buying despite recent price hikes. Some restocking is expected by early August, but prices are likely to stay range-bound, driven more by exchange trends and import dynamics than real demand.
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