India: HZL cuts zinc benchmark as LME prices remain weak

• LME zinc three-month prices rise to $3,756/t, stocks climb to 127,750 t
• HZL’s VMB transaction value rises over 50% y-o-y in H1 FY27

Hindustan Zinc Ltd (HZL) reduced its benchmark Special High-Grade (SHG) zinc ingot price by INR 1,500/t in its latest revision to INR 408,200/t. The company increased its lead benchmark by INR 1,100/t to INR 212,600/t.

BigMint’s latest SHG zinc assessment stood at INR 437,000/t ex-Delhi on 7 October, remaining INR 28,800/t above HZL’s latest benchmark.

Global zinc market remains under pressure

LME zinc three-month prices rose to $3,756/t and cash settlement to $3,799/t on 7 October, compared with $3,733/t and $3,798/t, respectively, on 2 October. Zinc stocks increased to 127,750 t from 123,750 t over the same period.

Despite the marginal recovery in three-month prices, the continued rise in exchange inventories remains a key pressure point for the global zinc market.

LME lead three-month prices rose to $1,884/t and cash settlement to $1,844.50/t on 7 October from $1,865/t and $1,827/t, respectively, on 2 October. Lead stocks declined to 349,400 t from 354,175 t over the same period.

Domestic benchmarks diverge

HZL’s latest revision reduced its zinc benchmark by INR 1,500/t to INR 408,200/t, while its lead benchmark increased by INR 1,100/t to INR 212,600/t.

BigMint’s assessment of spot zinc prices remains INR 28,800/t above HZL’s latest benchmark, widening from INR 27,300/t previously. The wider gap indicates a divergence between HZL’s benchmark and prevailing spot market indications despite the recent weakness in global zinc prices.

HZL’s digital metal commerce gains traction

Hindustan Zinc reported more than 50% year-on-year growth in transaction value on its digital commerce platform Vedanta Metal Bazaar (VMB) during the first half of FY27. Digital transactions on the platform also increased by more than 40% y-o-y during the period.

Launched in 2022, VMB enables customers across more than 500 cities in 23 states to access live prices, place orders and manage procurement digitally. The platform uses LME-linked pricing and provides Zinc Moolya and Lead Moolya for market-linked INR price discovery.

The platform integrates procurement processes including ordering, payments, invoicing, dispatch planning and shipment tracking, with Hindustan Zinc highlighting its growing relevance for MSMEs and small-volume buyers.

Outlook

Domestic zinc prices will likely track HZL’s revised benchmark, LME movements and exchange inventory trends. The widening gap between HZL’s benchmark and BigMint’s physical assessment, along with rising LME zinc stocks, will remain key indicators for domestic price movements.