- LME zinc inventories fall 9% w-o-w to 86,525 t
- Korean supply remains constrained, limiting import availability
India’s zinc ingot (99.995%) prices increased by INR 3,800/t w-o-w to INR 404,800/t ex-Delhi, according to BigMint’s assessment on 18 August 2026. The rise was supported by Hindustan Zinc Ltd’s (HZL) latest benchmark price hike and a sharp decline in London Metal Exchange (LME) zinc inventories. However, softer LME zinc prices and cautious buying from downstream consumers limited the pace of gains.
HZL hike, falling LME inventories support domestic prices
Domestic zinc prices strengthened after HZL increased its benchmark zinc ingot price by INR 2,600/t on 17 August compared with its previous revision on 13 August. Following the latest revision, HZL’s benchmark Special High Grade (SHG) zinc ingot price rose to INR 409,100/t.
The revision reinforced HZL’s influence on domestic price discovery and supported spot market prices. BigMint’s zinc ingot assessment rose from INR 401,000/t ex-Delhi on 12 August to INR 404,800/t on 18 August.
However, buying activity remained measured, with consumers continuing to procure largely against immediate requirements rather than building significant inventories. Market participants indicated that the rapid rise in metal prices has increased the risk of a correction, making buyers more cautious.
Global zinc fundamentals remained mixed. LME three-month zinc prices declined to $3,724/t on 18 August from $3,780/t on 12 August, while cash-settlement prices fell to $3,795/t from $3,852/t during the same period.
Despite softer LME prices, exchange inventories continued to decline sharply. LME zinc stocks fell by 8,825 t, or around 9%, to 86,525 t on 18 August from 95,350 t on 12 August. The continued drawdown reinforced concerns over tightening exchange availability and provided underlying support to zinc prices.
Korean supply constraints keep imports subdued
Import availability remained limited despite South Korean material being offered below domestic spot prices.
South Korean-origin SHG zinc was offered at around INR 400,000-401,000/t ex-Delhi, while Mumbai offers were heard at around INR 398,000/t. Australian-origin material was offered at around INR 418,000/t ex-Delhi.
Import premiums for South Korean zinc remained broadly stable at around $265-270/t. However, market participants reported delays in consignments, limiting the flow of imported material into the domestic market.
An import trader in Mumbai said there had been delays in consignments, with no major imports taking place recently.
Meanwhile, a Delhi-based SHG zinc trader cautioned that the sharp rise in zinc prices had increased the risk of a correction, noting that the pace of the recent rally could make the market vulnerable to a pullback.
The relatively narrow spread between domestic and imported material, combined with delays in shipments, is expected to keep buyers dependent on readily available domestic supplies in the near term.
Zinc alloy prices rise alongside higher ingot values
Zinc alloy prices also moved higher in line with the increase in primary zinc prices.
AZ alloy prices were assessed at around INR 414,000/t, while PMI prices were heard at around INR 370,000/t.
Demand from downstream alloy consumers remained moderate, with buyers continuing to adopt a cautious procurement strategy amid elevated zinc prices. While higher primary metal prices supported alloy quotations, concerns over a possible price correction continued to discourage aggressive inventory accumulation.
Coated steel market firms amid cautious demand
Activity in the coated steel segment remained relatively steady during the week, with prices for most products moving higher despite cautious buying sentiment.
BigMint’s benchmark assessment for Mumbai GP coil (0.8 mm/CTL, 120 GSM, IS 277) increased by INR 200/t w-o-w to INR 75,200/t ex-Mumbai.
Meanwhile, Mumbai PPGI (0.5 mm/CTL, 90 GSM, IS 14246) was assessed at INR 85,300/t, up INR 300/t w-o-w from INR 85,000/t.
Mumbai BGL (0.5 mm/CTL, 1220 mm, AZ150) was assessed at INR 90,000/t, remaining stable w-o-w.
HDGI export offers increased by $10/t w-o-w to around $805/t FOB Main Port, India, supported by previously concluded bookings. However, current market sentiment remained weak, with fresh buying enquiries subdued amid the ongoing summer holiday slowdown. Exporters continued to maintain a cautious stance as near-term demand remained limited.
Outlook
India’s zinc ingot market may remain supported in the near term, backed by HZL’s latest benchmark hike and a sharp drawdown in LME inventories. LME zinc stocks have fallen below 90,000 t, while continued delays in imported consignments could keep domestic material in focus.
However, the decline in LME three-month prices from $3,780/t on 12 August to $3,724/t on 18 August, coupled with cautious downstream buying, could limit further gains. Market participants are also increasingly wary of a correction after the recent rapid rise in zinc prices.
The market will closely monitor HZL’s pricing strategy, further LME inventory movements, import availability from South Korea and Australia, and the pace of downstream demand for clearer direction.
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