India: HZL cuts zinc benchmark as LME inventories climb

• HZL cuts zinc benchmark by INR 3,400/t, lead by INR 1,200/t
• LME zinc 3-month prices fall 1% w-o-w, while stocks rise 14%

Hindustan Zinc Ltd (HZL) reduced its benchmark Special High-Grade (SHG) zinc ingot price by INR 3,400/t to INR 407,900/t on 14 October. The company also cut its lead benchmark by INR 1,200/t to INR 212,300/t.

BigMint’s latest SHG zinc assessment stood at INR 436,000/t ex-Delhi on 14 October, leaving a gap of INR 28,100/t above HZL’s benchmark. The difference has widened from INR 24,000/t, although the assessments relate to different dates.

Global zinc market weakens amid rising inventories

LME zinc three-month prices declined to $3,749/t and cash settlement to $3,803/t on 14 October, compared with $3,781.50/t and $3,840/t, respectively, on 9 October. Zinc stocks increased by 13.6% to 144,125 t from 126,850 t over the same period.

The decline in LME prices alongside a sharp build-up in exchange inventories indicates weakening price momentum. The 17,275 t increase in stocks remains a key factor to monitor for the global zinc market.

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 the 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 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.