- Improved global cues support domestic secondary zinc market
- Zinc oxide prices edge higher on steady downstream demand
India’s zinc dross and zinc oxide markets witnessed a modest increase w-o-w as of 13 May 2026, supported by stronger global cues. Benchmark three-month London Metal Exchange (LME) zinc prices increased by $104/t w-o-w to $3,537/t, compared with $3,433/t a week earlier, lending support to domestic secondary zinc markets.
Meanwhile, LME zinc inventories increased by 15,850 t w-o-w to 110,275 t from 94,425 t on 7 May. Despite the rise in exchange inventories, firmer LME prices continued to support overall market sentiment.
However, domestic trading activity remained cautious, with buyers continuing to procure material mainly on a need basis amid ongoing price volatility.
Zinc dross, oxide price movements
Domestic zinc dross prices increased marginally by INR 3,000/t w-o-w to around INR 295,000/t ex-Delhi. In western India, zinc dross prices were heard at around INR 288,000-289,000/t ex-Mumbai, reflecting improved sentiment following the rise in LME zinc prices.
Meanwhile, zinc oxide (99% Zn) prices rose by around INR 800/t w-o-w to INR 280,800/t ex-Delhi. The increase was supported by steady demand from downstream sectors such as rubber, ceramics, and chemicals.
Firm oxide prices alongside relatively stable dross values kept producer margins largely balanced during the week.
Scrap segment trends
In the north Indian zinc scrap market, large-sized Tukdi (97% Zn) prices were reported at around INR 298,000-299,000/t ex-Delhi, while mid-sized Tukdi was heard at INR 293,000-294,000/t.
Scrap prices remained firm in line with the broader market trend, though trading activity was described as moderate. Buyers largely refrained from aggressive stocking despite improving global cues.
Market sentiments
Market participants indicated that the recent rise in LME zinc prices improved overall sentiment across the domestic market. However, procurement activity continued to remain cautious as buyers avoided building large inventories amid uncertain near-term price direction.
Sellers maintained firm offers due to replacement cost pressures and relatively steady scrap availability. Deal activity remained largely balanced, with most transactions limited to immediate consumption requirements.
Outlook
In the near term, zinc dross and oxide prices are expected to remain supported amid firm LME zinc prices and stable downstream demand. However, cautious buying activity and volatile global market conditions may continue to limit sharper gains in the domestic market. Demand from the rubber and chemical sectors is expected to provide underlying support to zinc oxide prices.
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