- Buyers remain cautious, continue need-based procurement
- HZL raises offers to INR 329,500/t tracking firmer sentiment
India’s zinc ingot (99.995%) prices edged higher by INR 11,000/t w-o-w to INR 328,000/t ex-Delhi on 31 March, compared with INR 317,000/t a week earlier, reflecting improved buying interest and firmer spot sentiment. The increase followed a price revision by Hindustan Zinc Limited (HZL), which raised offers by INR 8,500 to INR 329,500/t ex-Chanderiya. LME three-month zinc futures also increased by $129/t to $3,186/t showing a supportive trend, aligning with the domestic uptick.
Most buyers adopted a cautious approach, procuring material on a need basis while monitoring price sustainability at higher levels.
Spot market firms amid improved sentiment
Domestic spot offers mirrored the firmer trend, with SHG zinc quoted at INR 320,000/t ex-Mumbai, up by INR 8,000/t from lower levels of INR 312,000/t seen last week. Import premiums for Australian-origin material remained steady at $250/t CFR JNPT, indicating continued overseas cost support alongside improving domestic sentiment.
In the west coast of India, South Korea-origin imported SHG Zn (99.995%) was quoted at $3,445-3,450/t CFR Nhava Sheva.
In north India, Australian-origin zinc was heard at around INR 348,000-349,000/t ex-Delhi. PMI deals were reported near INR 284,000-285,000/t, reflecting selective buying interest and continued price sensitivity among buyers.
Downstream alloy prices tracked zinc’s uptrend. Zamak 3 increased to INR 333,000-334,000/t, while Zamak 5 rose to INR 338,000-339,000/t ex-works. Market participants noted that improved demand conditions and stable import costs supported sentiment, although buyers largely continued with need-based procurement.
Coated steel prices hit multi-year highs
In contrast, India’s coated flat steel segment witnessed a sharp upswing, with prices reaching multi-year highs amid tight supply conditions. GP coil prices rose by INR 3,100/t w-o-w to INR 76,800/t ex-Mumbai, while PPGI increased by INR 3,000/t to INR 81,700/t and Galvalume prices climbed by INR 2,000/t to INR 86,000/t.
The uptrend was driven by constrained availability due to gas shortages and elevated logistics costs, prompting mills to implement price hikes of INR 1,500-2,000/t. Demand remained stable but largely need-based, with coated products continuing to outperform HRC and CRC despite relatively moderate upstream movements.
Outlook
We expect zinc prices to remain muted with a positive bias, supported by HZL’s price increase and firm import premiums, although cautious buying behaviour could limit sharp upside. Meanwhile, coated steel prices are likely to stay elevated in the near term, backed by persistent supply tightness, cost pressures, and steady downstream demand.
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