- Muted end-user demand weighs on zinc oxide prices
- Netherlands emerges as leading exporter of zinc scrap
India’s zinc scrap and dross market witnessed mixed trends this week, with prices moving in a narrow band. BigMint assessed zinc diecast scrap (Middle East origin) at $2,280/tonne (t) CFR west coast India, up by $80/t from the previous week, amid tight supply and moderate buying interest.
At the time of reporting, London Metal Exchange (LME) zinc prices stood at $2,805/t, up by $20/t from $2,785/t last week.
Zinc dross was assessed at INR 222,000/t ex-Delhi, down by INR 2,000/t w-o-w, as per BigMint’s latest assessment. In Mumbai, prices were relatively steady at INR 219,000-220,000/t ex-works, reflecting limited inter-state movement due to ongoing monsoon disruptions and localised demand imbalances.
Several secondary galvanisers and smelters reported low procurement activity, with purchases largely limited to need-based buying. “Clean and dry dross is difficult to source in bulk right now, but demand is also patchy, so mills are not aggressively chasing material,” said a trader from Faridabad.
Despite the monsoon slowdown, some zinc dross sellers in Punjab and Gujarat attempted to raise offers to INR 223,000-225,000/t, but actual trade was rare above INR 222,000/t, reflecting buyer hesitation.
According to another trader, the zinc oxide (99% Zn) segment saw a slight downward movement, with prices heard in the INR 215,000-217,000/t ex-Delhi range. Offers declined by INR 2,000-3,000/t, driven by limited procurement from end-use sectors such as ceramics, rubber, and fertilizer manufacturing.
In north India, big-sized zinc scrap (Tukdi, 97% Zn) was offered at around INR 221,000/t ex-Delhi, while mid-sized Tukdi (97-98% Zn) held steady at INR 210,000/t. However, actual buying interest for mid-sized Tukdi was mostly heard in the INR 207,000-208,000/t range, indicating resistance from buyers to elevated offer levels.
Scrap imports rise in June; Netherlands and Germany lead surge
In June, the Netherlands emerged as the leading exporter of zinc scrap to India, shipping 1,745 MT, marking a continued upward trend over the past three months. The United States followed with 1,162 MT, recovering from May’s dip. Germany saw a sharp jump in shipments, reaching 995 MT, nearly tripling from May levels. Meanwhile, Saudi Arabia supplied 649 MT, a moderate decline from the previous month. The United Arab Emirates shipped 464 MT, showing a marginal increase over May volumes. Overall, European origins, particularly the Netherlands and Germany, showed stronger momentum in June scrap inflows.
Outlook
Zinc scrap and dross prices are expected to remain range-bound in the near term. While supply constraints and selective buying will provide some support, weak galvanizing activity and sluggish end-use demand will keep market sentiment cautious. Traders expect demand to pick up only post-monsoon, once infrastructure and industrial projects regain momentum.
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