- Zinc benchmark continues to trade above domestic spot prices
- LME zinc prices hit three-year high amid tightening supply
Hindustan Zinc Ltd (HZL) increased zinc ingot prices by INR 2,500/t ($29/t) while reducing lead ingot prices by INR 1,200/t ($14/t) on 3 August 2026 compared with its previous revision on 30 July 2026.
Following the latest revision, HZL’s benchmark Special High Grade (SHG) zinc ingot prices rose to INR 393,800/t ($4,575/t), while lead ingot prices declined to INR 212,700/t ($2,471/t).
On the London Metal Exchange (LME), zinc prices were trading at $3,683/t, up 1.18%, while lead prices stood at $1,879.50/t, up 0.18%, as of 12:30 PM IST. Zinc touched $3,687/t during the session, its highest level since August 2022, supported by persistent concerns over mine supply, tight concentrate availability and declining inventories. Over the past four weeks, zinc prices have gained around 4%, while registering a y-o-y increase of 33.4%.
According to BigMint’s latest assessment, SHG zinc ingot prices were assessed at INR 390,000/t ex-Delhi on 31 July. Despite today’s revision, HZL’s benchmark zinc price remained INR 3,800/t above the prevailing domestic spot-market level, indicating that producer prices continue to command a premium over physical market transactions.
Market participants noted that the latest upward revision reflects the strength in global zinc prices, although elevated benchmark levels could keep downstream procurement restricted to immediate requirements. Buyers are expected to remain cautious until domestic spot prices align more closely with producer benchmarks.
In the alloy segment, Zamak prices also remained firm, tracking the uptrend in primary zinc prices. As of 3 August, Zamak 3 was assessed at INR 403,500/t ex-Delhi, while Zamak 5 stood at INR 409,500/t ex-Delhi. Demand from the die-casting, automotive, hardware and consumer-durables sectors continued to support alloy prices, although higher replacement costs kept procurement largely need-based.
Internationally, sentiment in the zinc market remained firm despite weak downstream participation in China. According to another source, Guangdong’s mainstream #0 zinc traded at RMB 25,010-25,050/t ($/t) on 3 August, while downstream purchasing enthusiasm remained subdued amid the sharp rise in futures prices. Spot premiums in the region remained largely unchanged as sluggish trading activity offset supply concerns.
Fundamentally, the zinc market continues to receive support from constrained mine output and tight concentrate availability. Demand from infrastructure, galvanising and renewable-energy sectors remains resilient, although elevated prices have tempered immediate buying interest across several downstream segments.
Meanwhile, lead prices moved in a narrower range, with demand from the battery and automotive sectors continuing to provide support. However, softer international lead prices and domestic consumption trends are likely to influence producer pricing decisions in the coming weeks.
On the corporate front, Hindustan Zinc has appointed Amarendu Prakash, former Chairman and Managing Director of Steel Authority of India Limited (SAIL), as its new Chief Executive Officer with effect from 1 August 2026. Prakash is expected to lead the company’s next phase of growth, focusing on operational excellence, capacity expansion and strengthening Hindustan Zinc’s position in global zinc and silver markets.
Overall, domestic zinc prices are expected to remain firm in the near term, supported by strong global sentiment and tightening supply fundamentals. However, the premium of HZL’s benchmark over domestic spot prices could limit aggressive buying unless physical market prices strengthen further. Market participants will closely monitor developments in Chinese demand, LME inventories, US dollar movements and broader macroeconomic conditions for further price direction.
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