- LME inventories drop below 100,000 t
- Korean supply concerns support sentiment
India’s zinc ingot (99.995%) prices increased by INR 6,700/t w-o-w to INR 394,600/t ex-Delhi, according to BigMint’s assessment on 4 August 2026. The rise was driven by Hindustan Zinc Ltd’s (HZL) latest benchmark price hike and firm London Metal Exchange (LME) zinc prices, while the continued drawdown in exchange inventories further strengthened market sentiment. However, downstream consumers, including galvanisers and alloy manufacturers, continued to procure material largely on a need-based basis, limiting the pace of the uptrend.
HZL hike, lower LME inventories support domestic prices
Domestic sentiment strengthened after HZL raised its benchmark zinc ingot prices by INR 2,500/t on 3 August compared with its previous revision on 30 July. Following the revision, the producer’s benchmark Special High Grade (SHG) zinc price increased to INR 393,800/t.
The increase reinforced HZL’s position as the key pricing benchmark for the domestic market, pushing spot prices higher despite moderate buying activity. Market participants indicated that consumers remained cautious and continued to avoid aggressive inventory accumulation, preferring to purchase material only against confirmed orders.
Global fundamentals also remained supportive. LME three-month zinc prices rose to $3,672.5/t on 4 August from $3,576/t on 28 July, while cash settlement prices increased to $3,730/t from $3,631.5/t during the same period. Meanwhile, LME inventories declined by 3,850 t, or around 4%, to 98,650 t from 102,500 t, slipping below the 100,000-t mark and reinforcing expectations of tighter exchange availability.
Korean supply concerns persist as imports remain limited
Import activity remained subdued despite overseas material remaining competitive against domestic supplies.
Australian-origin zinc ingots were offered at around INR 411,000/t ex-Delhi, while South Korean-origin SHG material was heard at around INR 392,000/t ex-Delhi. Korean-origin zinc continued to be offered at around $3,855-3,860/t, with premiums remaining broadly stable at $270-275/t.
Market participants indicated that Korean-origin material could remain tight over the next two to three months owing to supply constraints, although congestion at Mundra port has gradually started easing. As a result, buyers are expected to continue relying primarily on domestic HZL supplies because of better availability and greater supply confidence.
The narrowing gap between domestic benchmark prices and imported offers has also reduced the incentive for consumers to build large import positions, keeping procurement largely requirement-driven.
Alloy prices strengthen in line with higher zinc values
Downstream alloy prices moved up in tandem with higher zinc prices. Zamak 3 was assessed at around INR 404,000-405,000/t, while Zamak 5 was heard at INR 410,000-412,000/t. Primary metal ingot (PMI) prices were assessed at around INR 349,000-350,000/t.
Demand from die-casting, engineering and allied manufacturing sectors remained moderate, with buyers continuing to procure material against confirmed orders. While higher zinc prices supported alloy quotations, overall consumption remained subdued.
Coated steel market remains mixed amid cautious demand
Activity in the coated steel segment remained mixed during the week, reflecting cautious buying sentiment across end-user industries.
BigMint’s benchmark assessment for Mumbai GP coil (0.8 mm/CTL, 120 GSM, IS 277) remained stable w-o-w at INR 73,500/t ex-Mumbai, as balanced trade activity kept prices unchanged.
Mumbai PPGI (0.5 mm/CTL, 90 GSM, IS 14246) was assessed at INR 84,100/t, down INR 200/t w-o-w from INR 84,300/t amid limited bookings and cautious procurement.
In contrast, Mumbai BGL (0.5 mm/CTL, 1220 mm, AZ150) increased by INR 400/t w-o-w to INR 89,900/t, supported by improved sentiment and firmer expectations in value-added steel products.
HDGI export offers remained stable w-o-w at $795/t FOB main port, India, as market participants continued to adopt a cautious approach despite a slight improvement in trade sentiment.
Outlook
India’s zinc ingot market may remain supported through August and September, backed by HZL’s latest benchmark revision, firm LME prices and continued declines in exchange inventories. Expectations of tighter South Korean supply over the next two to three months could further constrain import availability and increase reliance on domestic material.
However, subdued procurement from galvanisers and alloy manufacturers, coupled with persistent need-based buying, is likely to limit sharper gains. Market participants will closely monitor HZL’s pricing strategy, developments in Korean supply, LME inventory movements and the pace of recovery in end-user demand for clearer market direction.
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