- HZL zinc benchmark falls to INR 405,800/t
- Lead benchmark declines to INR 211,200/t
Hindustan Zinc Ltd (HZL) reduced its benchmark zinc ingot price by INR 3,300/t ($38/t) on 20 August from its previous revision on 17 August. The company also cut its lead ingot price by INR 700/t ($8/t), signalling softer domestic pricing conditions.
Following the revision, HZL’s Special High Grade (SHG) zinc benchmark stood at INR 405,800/t ($4,719/t), while its lead benchmark declined to INR 211,200/t ($2,456/t).
Zinc benchmark moves closer to physical market
HZL had raised its zinc benchmark by INR 2,600/t between 13 and 17 August to INR 409,100/t. The latest reduction leaves the benchmark INR 700/t below its 13 August level.
BigMint’s domestic SHG zinc assessment stood at INR 403,000/t ex-Delhi on 19 August. HZL’s latest benchmark was therefore INR 2,800/t, or around 0.7%, above the physical-market assessment, narrowing the gap from INR 5,100/t previously.
LME zinc remains firm
LME zinc was trading at $3,717/t, up 0.11%, at 2:30 PM IST on 20 August. Stocks rose sharply to 95,050 t on 19 August from 86,525 t a day earlier, although they remained below 100,000 t. LME lead was at $1,887/t, while stocks increased to 418,575 t.
The firm international zinc price and relatively low exchange inventories contrast with HZL’s latest domestic price reduction, indicating that domestic market conditions are exerting greater influence on the revision.
Lead prices continue to soften
HZL’s lead benchmark has declined by INR 2,600/t from INR 213,800/t on 13 August. The latest reduction takes the benchmark to INR 211,200/t, while LME lead remained broadly stable at $1,887/t.
Outlook
HZL’s latest revision indicates cautious domestic pricing conditions for zinc and lead. For zinc, the narrowing gap between HZL’s benchmark and physical-market assessment suggests that domestic prices are moving closer to prevailing spot levels. Further direction will depend on downstream demand, domestic availability and subsequent HZL revisions.
Leave a Reply