India: Zinc ingot prices slip on limited demand; HZL price cut mirrors LME decline

• Ingot prices fall on soft spot demand from galvanisers
• Australian SHG offers ease; spot liquidity remains thin

India’s zinc ingot (99.995%) prices slipped by INR 5,000/tonne (t) w-o-w to INR 315,000/t ex-Delhi, according to BigMint’s assessment. The decline was driven by weak spot demand from galvanisers and alloy makers, alongside softer global benchmarks.

On 22 December, Hindustan Zinc Limited (HZL) reduced its zinc ingot prices by INR 4,900/t ($55/t) to INR 309,600/t ($3,454/t) ex-Chanderiya, tracking the downturn in London Metal Exchange (LME) zinc prices.

Traders reported special high grade (SHG) zinc ingots at INR 309,000/t ex-Mumbai, down INR 3,000/t w-o-w, as market liquidity remained limited and buyers stayed cautious. Import offers for Australian-origin SHG were quoted at a $240/t premium over LME on a CFR Mundra basis, though deals were sparse.

In north India, Australian-origin zinc was offered at INR 335,000/t ex-Delhi, with buying interest remaining muted due to ample domestic availability and sluggish downstream demand.

Market participants noted that most purchases were need-based, with only a handful of large consumers active in the spot market.

Coated flat steel prices edge up on sentiment support

Indian coated flat steel prices rose marginally in the latest weekly assessment, supported mainly by cautious sentiment rather than strong fundamentals. GP coils were assessed at INR 60,800/t, up INR 200/t w-o-w; galvalume at INR 74,800/t, up INR 300/t; and PPGI at INR 69,400/t, up INR 100/t. Moderate buying interest and selective restocking lent some support, though overall demand remained average. Prices are ex-Mumbai, exclusive of 18% GST.

Korea Zinc plans recycled-content smelter in the US

Korea Zinc has proposed a $7.4 billion smelting facility in Clarksville, Tennessee, aimed at processing metals byproducts and electronic scrap into 13 metals, including zinc, copper, and rare earth elements. Backed by US government agencies, the project is expected to strengthen domestic supply chains and will be modeled on Korea Zinc’s Onsan smelter. The facility will primarily use recycled feedstock sourced from electronic waste, leveraging assets such as PedalPoint and Kataman Metals.

Outlook

Domestic zinc prices are likely to remain under pressure in the near term amid weak downstream demand and continued softness in global benchmarks. While import premiums for Australian-origin SHG may offer limited downside support, overall market sentiment remains cautious.