- HZL raises SHG zinc benchmark by INR 14,000/t
- Import indications firm despite lower Korean premiums
India’s zinc ingot (99.995%) prices remained firm w-o-w amid tight material availability in both domestic and import markets. BigMint’s benchmark assessment stood at INR 437,000/t ex-Delhi on 6 October. In contrast, Hindustan Zinc Ltd (HZL) raised its SHG zinc benchmark by INR 14,000/t in its latest revision to INR 423,700/t.
LME zinc prices recovered marginally during the week, while exchange stocks continued to increase. Import indications remained firm, with South Korean duty-free premiums at around $260/t.
Domestic prices remain strong amid supply shortage
Domestic zinc prices remained supported by tight material availability despite fluctuations in international zinc prices.
BigMint’s benchmark assessment stood at INR 437,000/t ex-Delhi on 6 October. Meanwhile, HZL raised its SHG zinc ingot benchmark by INR 14,000/t to INR 423,700/t in its latest revision.
Market participants reported a shortage of material in both domestic and import markets, providing support to prices despite cautious buying activity.
Zinc import indications remain firm
India’s zinc import market remained relatively firm, supported by limited material availability.
South Korean SHG zinc duty-free premiums were indicated at around $260/t. Korean SHG zinc was indicated at around $4,025-4,030/t, while Korean-origin zinc was heard at around INR 434,000/t in the domestic market. Australian-origin zinc was indicated at around INR 482,000/t.
Despite the lower Korean premium, limited availability in the import market continued to keep replacement costs elevated.
Material availability remains tight
Zinc availability remained tight across both domestic and imported markets, according to market participants.
The shortage has provided support to domestic prices, while buyers continued to monitor replacement costs and availability closely. Buying interest remained focused on securing material amid limited supply.
Zinc alloy prices ease
Zinc alloy prices remained lower amid the correction in domestic zinc prices.
In Delhi, Zamak 3 was indicated at around INR 419,700/t, while Zamak 5 was heard at around INR 425,700/t. Zinc PMI prices were indicated at around INR 387,000-388,000/t.
Buying activity remained selective, with alloy consumers continuing to monitor zinc replacement costs and material availability.
Coated steel prices remain stable
India’s coated flat steel prices remained largely stable w-o-w, with only a marginal increase in Galvalume prices.
BigMint’s Mumbai GP coil assessment remained unchanged at INR 83,000/t ex-Mumbai as of 1 October. PPGI was also stable at INR 89,300/t, while galvalume increased marginally by INR 100/t to INR 92,600/t.
Trading activity was measured, with prices largely supported by stable mill offers and raw material costs.
Outlook
India’s zinc ingot market is expected to remain firm in the near term, with tight material availability and firm import replacement costs providing support, while rising LME stocks could limit significant upside.
LME zinc cash prices stood at $3,803/t on 6 October, up from $3,798/t on 2 October, while three-month zinc increased to $3,766/t from $3,733/t. LME zinc stocks increased to 127,275 t on 6 October from 123,750 t on 2 October.
South Korean duty-free premiums remained around $260/t, while SHG zinc was indicated at $4,025-4,030/t. With material availability reportedly tight in both domestic and import markets, supply conditions are likely to remain a key factor determining the direction of domestic zinc prices.
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