India: HZL raises zinc and lead benchmarks amid sharp domestic market uptrend

• HZL zinc benchmark rises by INR 12,600/t to INR 418,400/t
• Lead benchmark increases by INR 1,400/t to INR 212,600/t

Hindustan Zinc Ltd (HZL) raised its benchmark zinc ingot price by INR 12,600/t ($146/t) on 24 August from its previous revision on 20 August, following a sharp increase in domestic market prices. The company also increased its lead ingot benchmark by INR 1,400/t ($16/t).

Following the revision, HZL’s Special High Grade (SHG) zinc benchmark stood at INR 418,400/t ($4,866/t), while its lead benchmark rose to INR 212,600/t ($2,470/t).

Zinc benchmark aligns with physical market

HZL’s latest zinc revision follows a sharp uptrend in domestic physical prices. As per BigMint, SHG zinc traded at INR 417,000-418,000/t ex-Delhi on 24 August, bringing HZL’s revised benchmark broadly in line with prevailing market levels.

At the upper end of the traded range, HZL’s benchmark was only INR 400/t above the physical market, while the gap widened to INR 1,400/t at the lower end. This marks a significant shift from the previous revision on 20 August, when HZL’s benchmark stood at INR 405,800/t amid softer domestic conditions.

The INR 12,600/t increase, equivalent to around 3.1%, indicates that HZL has responded to the rapid strengthening in spot-market prices.

LME zinc touches 4-year high

LME zinc touched a four-year high of $3,823.85/t on 21 August 2026, its highest level since June 2022, as tightening physical availability and speculative short-covering combined to accelerate the rally. LME warehouse stocks fell around 25% in two months to 93,125 t, while the cash-to-three-month spread widened to about $132/t, signalling acute nearby scarcity.

At the same time, zinc concentrate treatment charges turned deeply negative, falling to around -$110/t in August from +$100/t in November 2025, indicating severe pressure on smelters to secure feedstock. The combination of shrinking exchange stocks, a widening regional inventory gap and delayed mine supply has strengthened the physical case for higher prices, while short-covering has amplified the move.

Lead benchmark edges higher

HZL raised its lead benchmark to INR 212,600/t from INR 211,200/t on 20 August. The increase was comparatively modest against zinc, suggesting firmer but less aggressive domestic pricing conditions in the lead market.

LME lead was trading at $1,909/t at 5:00 PM IST on 24 August, up 0.58% d-o-d. Exchange stocks stood at 416,850 t on 21 August, slightly lower than 417,100 t on 20 August, while remaining substantially above zinc inventory levels.

Outlook

HZL’s latest revision reflects a sharp strengthening in India’s zinc market, with the company’s benchmark moving broadly in line with prevailing physical-market levels. Further direction will depend on whether the domestic uptrend sustains and on movements in LME zinc prices and exchange inventories.

For lead, the smaller benchmark increase points to relatively stable domestic conditions. Subsequent HZL revisions will depend on downstream demand and the extent to which international price gains are transmitted to the domestic market.