India: HZL cuts zinc benchmark as LME inventories climb

• HZL Q2 FY27 net profit jumps 142% y-o-y to INR 6,412 crore, while EBITDA rises 108%
• LME zinc 3-month prices fall 2.2% w-o-w as stocks rise 24.8%

Hindustan Zinc Ltd (HZL) reduced its benchmark Special High-Grade (SHG) zinc ingot price by INR 9,600/t to INR 398,300/t on 19 October. The company also cut its lead benchmark by INR 1,100/t to INR 211,200/t.

BigMint’s SHG zinc assessment stood at INR 436,000/t ex-Delhi on 16 October, with indicative market levels at INR 436,000-437,000/t on 19 October. Based on these indicative levels, the difference above HZL’s latest benchmark stands at INR 37,700-38,700/t.

Global zinc market weakens amid rising inventories

LME zinc three-month prices declined to $3,699/t on 16 October from $3,781.50/t on 9 October, while cash settlement prices fell to $3,739/t from $3,840/t over the same period.

Zinc stocks on the LME increased by 24.8% to 158,275 tonnes from 126,850 tonnes, adding 31,425 tonnes over the week. The simultaneous decline in prices and sharp inventory build-up indicate weakening price momentum in the global zinc market. Further inventory additions and price movements remain key factors to monitor.

LME lead prices edge higher as inventories decline

LME lead three-month prices rose to $1,891/t on 16 October from $1,883.50/t on 9 October, while cash settlement prices increased to $1,854/t from $1,847/t. Lead stocks declined by 2.3% to 339,275 tonnes from 347,125 tonnes over the same period, a reduction of 7,850 tonnes. Rising prices alongside falling exchange inventories indicate relatively firmer conditions in the lead market compared with zinc, although HZL reduced its domestic lead benchmark to INR 211,200/t on 19 October.

HZL reports 142% rise in Q2 net profit

Hindustan Zinc reported a 142% year-on-year increase in consolidated net profit to INR 6,412 crore in Q2 FY27, compared with INR 2,649 crore in the corresponding quarter last year. Revenue from operations rose 76.5% to INR 15,093 crore, while EBITDA increased 108% to INR 9,285 crore.

The company’s EBITDA margin improved to 62% from 52%, while zinc production costs declined 29% year-on-year to $703/t. HZL attributed the lower costs to improved mined grades, higher metal production and increased by-product realisations.