India: HZL raises zinc benchmark as LME prices recover

• HZL raises zinc benchmark by INR 3,100/t, lead by INR 900/t
• LME zinc 3-month prices rise 1% w-o-w, while stocks climb 3%

Hindustan Zinc Ltd (HZL) increased its benchmark Special High-Grade (SHG) zinc ingot price by INR 3,100/t to INR 411,300/t on 12 October. The company also raised its lead benchmark by INR 900/t to INR 213,500/t.

BigMint’s latest SHG zinc assessment stood at INR 435,300/t ex-Delhi on 9 October, remaining INR 24,000/t above HZL’s latest benchmark, narrowing from INR 27,100/t against the 8 October HZL benchmark. The reduction in the gap reflects HZL’s latest upward revision, although the two prices relate to different assessment dates.

Global zinc market recovers amid rising inventories

LME zinc three-month prices rose to $3,781.50/t and cash settlement to $3,840/t on 9 October, compared with $3,733/t and $3,798/t, respectively, on 2 October. Zinc stocks increased by 2.5% to 126,850 t from 123,750 t over the same period.

The recovery in LME prices indicates improved price momentum during the week. However, the 3,100 t increase in exchange inventories remains a key factor to monitor for the global zinc market.

LME lead three-month prices rose to $1,883.50/t and cash settlement to $1,847/t on 9 October from $1,865/t and $1,827/t, respectively, on 2 October. Lead stocks declined to 347,125 t from 354,175 t over the same period.

CBI files closure report in HZL disinvestment case

The Central Bureau of Investigation (CBI) filed a closure report on 9 October in the case concerning the 2002 disinvestment of Hindustan Zinc, stating that allegations in the FIR could not be substantiated during its investigation. The case relates to alleged irregularities in the valuation and sale of a 26% government stake in the company.

The matter will now be considered by a special court, which will decide whether to accept the closure report or order further investigation. The development concerns HZL’s historical disinvestment and does not directly indicate a change in its current zinc production or market fundamentals.