India: HZL raises zinc prices by INR 9,200/t, cuts lead by INR 2,900/t

• HZL’s SHG zinc premium widens over domestic spot market levels
• HZL outlines long-term growth strategy focused on critical minerals diversification

Hindustan Zinc Ltd (HZL) on 1 July 2026 increased zinc ingot prices by INR 9,200/t ($107/t) while reducing lead ingot prices by INR 2,900/t ($34/t) compared with its previous revision announced on 29 June.

Following the latest revision, HZL’s benchmark Special High Grade (SHG) zinc ingot prices were raised to INR 374,500/t ($4,378/t), while lead ingot prices were lowered to INR 210,400/t ($2,460/t).

On the London Metal Exchange (LME), zinc prices were trading at $3,460/t, down 0.89%, while lead prices stood at $1,864/t, down 0.12% as of 12:45 PM IST. Base metals remained under pressure amid cautious investor sentiment, with market participants monitoring macroeconomic developments, movements in the US dollar, and the global demand outlook.

Despite the latest increase, HZL’s SHG zinc prices continued to command a premium over domestic spot market levels, with the spread widening following the latest price hike. According to BigMint’s assessment, SHG zinc ingot prices were assessed at INR 370,000/t ex-Delhi on 1 July, placing HZL’s benchmark SHG prices at a premium of around INR 4,500/t. Market participants indicated that procurement activity remained largely need-based, with consumers continuing to purchase cautiously amid fluctuating global prices and mixed downstream demand.

On the corporate front, Hindustan Zinc has outlined an ambitious strategy to diversify beyond its core zinc business over the next five years. Speaking at the company’s 60th Annual General Meeting, Chief Executive Officer Arun Misra said the company plans to add at least three new metals to its portfolio, with a focus on critical minerals such as rare earth elements, potash and tungsten. The company has already secured mineral blocks for these commodities under the government’s Critical Mineral Mission and is also evaluating opportunities in copper and gold should suitable assets become available.

The diversification strategy complements HZL’s ongoing INR 40,000-45,000 crore expansion programme aimed at doubling its annual metal production capacity to 2 million tonnes. The company believes the new mineral portfolio will strengthen its presence across sectors such as electric mobility, renewable energy, defence and advanced manufacturing while supporting India’s critical mineral security.

Fundamentally, the zinc market continues to receive support from expectations of constrained refined metal availability. Ongoing operational disruptions at several global mining and smelting facilities, coupled with relatively low inventories and the International Lead and Zinc Study Group’s projected refined zinc deficit for 2026, continue to provide medium-term support to market sentiment despite near-term price volatility.

Overall, domestic zinc prices are likely to remain supported by tight supply fundamentals and HZL’s higher benchmark prices. However, uncertainty surrounding global economic growth, movements in the US dollar and cautious downstream buying may continue to limit aggressive purchasing activity in the near term.