- LME zinc stocks fall 5% w-o-w, prices inch up by 1%
- HZL raises zinc ingot prices by INR 1,200/t on 20 Jul
India’s zinc ingot (99.995%) prices increased by INR 1,600/t w-o-w to INR 383,600/t ex-Delhi, according to BigMint’s latest assessment. The increase followed Hindustan Zinc Ltd’s (HZL) latest benchmark price hike and came amid a sharp decline in LME zinc inventories. However, downstream demand remained subdued, with galvanisers and alloy manufacturers largely continuing to procure on a need-based basis.
HZL hike, falling LME stocks support domestic prices
Domestic market sentiment strengthened after HZL increased zinc ingot prices by INR 1,200/t on 20 July compared with its previous revision announced on 16 July. Following the latest revision, the producer’s benchmark Special High Grade (SHG) zinc ingot price rose to INR 385,100/t.
The revision provided further support to domestic spot prices, with HZL’s benchmark continuing to act as the primary pricing reference in the market. However, buying activity remained moderate as consumers continued to limit purchases largely to immediate requirements.
Global zinc fundamentals also remained supportive. LME three-month zinc prices increased 1% to $3,566/t on 21 July from $3,529/t on 17 July, while cash settlement prices rose to $3,591/t from $3,549/t over the same period. Meanwhile, LME zinc inventories declined sharply to 108,500 t from 114,275 t on 13 July, marking a fall of 5,775 t or 5% during the week and reinforcing expectations of tighter exchange availability.
Korean material remains competitive in import market
Import activity remained moderate, with a wide price differential between origins influencing buying interest.
Australian-origin zinc ingots were offered at INR 393,000-394,000/t ex-Delhi, while Korean-origin material was heard at INR 379,000-380,000/t. Korean zinc import premiums were assessed at around $270-275/t.
Lower-priced Korean material remained competitive against domestic zinc, although buying interest was limited as downstream consumers continued to follow a need-based procurement strategy. The price gap between Korean and Australian-origin material also reflected differences in import economics and availability.
Alloy market strengthens alongside zinc prices
Downstream alloy prices increased in line with the recovery in zinc values. Zamak 3 was assessed at around INR 392,000/t, while Zamak 5 was assessed at INR 399,000-400,000/t. Primary metal ingot (PMI) was assessed at around INR 335,000/t.
Demand from die-casting and engineering sectors remained moderate, with consumers continuing to procure primarily against confirmed orders. Despite higher raw material prices, buying activity remained cautious amid subdued downstream demand.
Coated steel market remains stable
In the coated steel segment, market activity remained subdued, with prices largely unchanged across key products.
BigMint’s benchmark assessment for Mumbai GP coil (0.8 mm/CTL, 120 GSM, IS 277) remained stable w-o-w at INR 73,900/t ex-Mumbai, as subdued demand and slow market activity kept transaction levels unchanged.
Meanwhile, Mumbai PPGI (0.5 mm/CTL, 90 GSM, IS 14246) also remained stable w-o-w at INR 85,200/t, with weak buying interest and limited trading activity restricting any significant price movement.
Similarly, Mumbai BGL (0.5 mm/CTL, 1220 mm, AZ150) remained unchanged w-o-w at INR 89,500/t, as sluggish demand and muted booking activity continued to keep prices range-bound during the week.
HDGI export activity remains limited amid EU safeguard uncertainty
HDGI export offers to the EU remained stable w-o-w at around $790/t FOB India.
European buyers continued to assess their allocated quota volumes under the EU’s new safeguard regime, with no fresh bookings reported during the assessment week. As a result, export activity remained limited, and market sentiment remained mixed.
Outlook
India’s zinc ingot market is expected to remain cautiously firm in the near term. HZL’s latest benchmark price increase, declining LME inventories and supportive global zinc prices are likely to provide an underlying floor to domestic prices. Competitive Korean import offers, however, could limit further upside if availability improves.
At the same time, subdued downstream demand, cautious need-based procurement and weak activity in coated steel markets are expected to restrict sharper price gains. Market participants will closely monitor HZL’s pricing strategy, import arrivals, LME inventory trends and the pace of recovery in downstream demand for clearer market direction.
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