- Domestic zinc prices decline following HZL price cut
- Stronger US dollar prompts cautious buyer sentiment
India’s zinc ingot (99.995%) prices declined by INR 800/t w-o-w to INR 334,200/t ex-Delhi, according to BigMint’s assessment on 10 March, reflecting softer domestic sentiment despite relatively firm global cues.
Earlier, on 9 March, Hindustan Zinc Limited (HZL) reduced its zinc ingot prices by INR 6,000/t ($65/t) to INR 336,000/t ($3,639/t) ex-Chanderiya. Meanwhile, LME zinc three-month futures stood at $3,343/t, up $39/t w-o-w from $3,304/t, offering partial support to the global market.
Spot market dynamics
In the domestic spot market, special high-grade (SHG) zinc ingots were offered at around INR 329,000/t ex-Mumbai, down INR 2,000/t w-o-w. Import premiums for Australian-origin zinc increased by $10/t to $240/t over LME on a CFR JNPT basis.
In north India, Australian-origin material was quoted at around INR 375,000-376,000/t ex-Delhi, supported by improving buying interest. Market sources also reported PMI zinc deals near INR 285,000/t, while Korea-origin zinc was quoted around INR 332,000-333,000/t ex-Delhi, indicating a narrowing price spread with domestic material.
Downstream alloy prices mirrored the softer zinc trend. A Delhi-based alloy manufacturer indicated that Zamak 3 prices eased to INR 343,000-344,000/t, while Zamak 5 was heard around INR 348,000/t ex-works.
“Geopolitical tensions are adding uncertainty to the base metals market. The ongoing Iran conflict has strengthened the US dollar, which could weigh on base metals demand in the near term,” said a Mumbai-based non-ferrous metals trader, noting that buyers are currently cautious with fresh bookings.
Coated flat steel prices increase
Meanwhile, India’s coated flat steel prices increased w-o-w in early March after mills raised list prices by INR 750-1,500/t, driven by higher substrate costs and tight availability of thinner gauges.
Galvanised plain (GP) coil prices increased by INR 900/t to INR 70,200/t, while PPGI rose INR 100/t to INR 77,600/t, and bare galvalume (BGL) gained INR 200/t to INR 81,200/t, all ex-Mumbai.
Market participants noted that the tight supply of thin-gauge material and a marginal improvement in trade sentiment supported the price increase, although buying activity largely remained need-based.
Outlook
Domestic zinc prices may remain under pressure following HZL’s recent price cut and softer spot offers, though firm LME prices and higher import premiums could limit further downside. In coated steel, recent mill hikes and tight thin-gauge availability are expected to keep prices supported in the near term.
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