- Firm LME zinc supports cost sentiment
- Zinc oxide producers active in feedstock procurement
India’s zinc dross and zinc oxide markets moved higher week-on-week on 11 March 2026, supported by steady procurement from domestic processors and improved trading activity across key hubs. Market participants reported stronger sentiment as buyers anticipated higher replacement costs amid rising fuel prices and ongoing geopolitical tensions.
Benchmark three-month LME zinc stood at $3,305/t, largely stable compared with $3,304/t last week, reinforcing positive sentiment across the secondary zinc value chain and supporting domestic price levels.
Zinc dross & zinc oxide prices strengthen
Domestic zinc dross prices increased by INR 5,200/t w-o-w to INR 269,700/t ex-Delhi. In western India, prices strengthened to around INR 267,000/t ex-works Mumbai, supported by consistent buying from local zinc oxide manufacturers.
Market participants noted that consistent procurement from oxide producers kept trading activity active, while firm global zinc prices encouraged sellers to maintain higher offer levels.
Zinc oxide (99% Zn) prices increased by INR 5,400/t w-o-w to INR 259,800/t ex-Delhi, tracking the rise in dross feedstock costs.
A Gujarat-based zinc oxide producer noted that tightening LPG supplies amid the ongoing US-Iran conflict could affect galvanizing operations. According to the producer, lower galvanizing activity may reduce zinc dross generation, tightening feedstock availability for oxide producers and supporting secondary zinc prices.
In the north Indian scrap segment, big-sized Tukdi (97% Zn) was offered at INR 256,000-257,000/t ex-Delhi, while mid-sized Tukdi (97-98% Zn) was heard at INR 253,000-254,000/t.
Tata Steel zinc dross e-auction
Tata Steel will conduct an e-auction on 13 March offering 25 t of zinc dross upper from Sahibabad and another 25 t from its Jamshedpur CGL unit. Market participants are closely tracking the auction outcome as it could influence short-term feedstock availability.
Outlook
In the near term, zinc oxide producers are expected to continue securing feedstock amid firm dross prices and stable downstream demand. Market participants expect auction outcomes and galvanizing operating rates to determine immediate supply conditions. Any disruption in galvanizing activity due to LPG constraints could tighten dross availability and keep oxide prices supported in the coming weeks.
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