India: Zinc scrap market shows mixed cues even as LME prices strengthen

• Imported diecast scrap gains track LME prices
• Zinc oxide declines on weak downstream procurement

Indian zinc scrap market remained mixed in the week ended 12 February, as stronger global prices contrasted with subdued downstream demand in select segments. While imported scrap tracked gains in zinc prices on the London Metal Exchange (LME), domestic by-products recorded marginal fall in prices amid cautious buying.

BigMint assessed zinc diecast scrap (Middle East origin) at $2,675/t CFR west coast India, up by $35/t w-o-w. Market participants attributed the rise to the sharp increase in global zinc prices, with buyers adjusting bids in line with LME-linked import parity. At the time of reporting, three-month LME zinc stood at $3,441/t, up by $165/t from $3,276/t last week, lending support to imported scrap sentiment.

In the domestic market, zinc dross prices remained largely unchanged with minor variations across regions. BigMint assessed zinc dross at INR 264,900/t ex-Delhi, down marginally by INR 200/t w-o-w. In Mumbai, prices remained unchanged at INR 260,000/t ex-works, reflecting balanced supply and demand fundamentals despite muted galvanisation activity.

Meanwhile, zinc oxide (99% Zn) prices fell by INR 2,800/t w-o-w to INR 252,000/t ex-Delhi. Traders cited reduced procurement from end-user industries such as ceramics, rubber, and fertiliser manufacturing as the key reason behind the decline.

In the scrap segment, big-sized zinc Tukdi (97% Zn) in north India was offered at INR 259,000-260,000/t ex-Delhi, while mid-sized Tukdi (97-98% Zn) was quoted at INR 255,000-256,000/t. Prices were supported by firm input costs and limited spot availability, although overall trade volumes remained moderate.

KPIL to auction 50 t zinc ingots

On the supply front, Kalpataru Projects International Ltd (KPIL) will conduct an e-auction for 50 t of zinc ingots (HSN 79011200) from its Raipur plant on 19 February 2026 at 3:00 PM via mjunction. The material will be sold on an “as-is-where-is” basis, with mandatory inspection prior to bidding.

Outlook

We expect selective buying interest in diecast and Tukdi scrap to lend support to prices, while subdued galvanisation activity and weak zinc oxide demand are likely to keep overall market sentiment cautious. We expect industrial demand to improve in the coming weeks, which could lead to a boost in prices.