- Oxide demand from rubber, chemical sectors remains steady
- Trading activity continues on need-based procurement
India’s zinc dross and zinc oxide prices increased further w-o-w as of 27 May 2026, supported by continued firmness in London Metal Exchange (LME) zinc prices despite persistent market volatility. Benchmark three-month LME zinc prices averaged around $3,545/t during the week, compared with around $3,530/t a week earlier, lending support to domestic secondary zinc markets.
Meanwhile, LME zinc inventories declined to 108,400 t on 27 May from 112,050 t recorded on 20 May, indicating relatively improved market fundamentals. Firm global prices and lower exchange inventories continued to support domestic market sentiment.
However, trading activity in the domestic market remained largely cautious, with most buyers continuing purchases on an immediate requirement basis amid fluctuating global trends.
Zinc dross, oxide price movements
Domestic zinc dross prices increased by around INR 3,000/t w-o-w to approximately INR 303,200/t ex-Delhi. In western India, zinc dross prices were heard at around INR 295,000-296,000/t ex-Mumbai, reflecting sustained strength in the secondary market following firm LME trends.
Meanwhile, zinc oxide (99% Zn) prices increased marginally by around INR 800/t w-o-w to INR 290,800/t ex-Delhi. Stable downstream demand from the rubber and chemical sectors alongside higher replacement costs continued to support oxide prices.
Firm realisations in the secondary zinc segment supported producer sentiment during the week.
Scrap segment trends
In the north Indian zinc scrap market, large-sized Tukdi (97% Zn) prices were heard at around INR 302,000-303,000/t ex-Delhi, while mid-sized Tukdi was heard at INR 298,000-299,000/t.
Scrap prices remained firm in line with broader market trends, although trading volumes continued to remain moderate. Buyers largely avoided aggressive inventory accumulation amid ongoing price volatility.
Market sentiments
Market participants stated that sustained firmness in LME zinc prices and declining exchange inventories continued to improve overall sentiment across the domestic market. However, procurement activity remained cautious as buyers preferred to maintain limited inventories amid uncertain short-term price movements.
Sellers continued maintaining firm offers owing to elevated replacement costs and relatively balanced scrap availability. Most transactions remained restricted to immediate consumption requirements.
Outlook
In the near term, zinc dross and zinc oxide prices are expected to remain supported amid firm LME zinc prices and stable downstream demand fundamentals. However, cautious buying activity and continued volatility in global markets may restrict sharper upside movement in domestic prices. Demand from the rubber and chemical sectors is expected to continue providing underlying support to zinc oxide prices.
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