India: HZL raises zinc benchmark as global prices hold firm

• HZL raises zinc benchmark by INR 4,000/t
• LME zinc stays above $3,800/t despite rising stocks

Hindustan Zinc Ltd (HZL) raised its benchmark Special High-Grade (SHG) zinc ingot price by INR 4,000/t on 21 September to INR 424,600/t. The company also increased its lead benchmark by INR 2,800/t to INR 214,200/t.

BigMint’s latest SHG zinc assessment stood at INR 437,500/t ex-Delhi on 18 September, remaining INR 12,900/t above HZL’s revised benchmark.

Global zinc market remains firm

LME zinc prices strengthened during the latest session, with the three-month contract at $3,913/t and cash settlement at $4,010/t on 18 September. At 16:30 pm on 21 September, zinc was indicated at $3,861/t, up 0.77%.

LME zinc stocks increased to 115,300 t on 18 September from 114,250 t a day earlier and remained well above the 109,550 t recorded on 14 September.

Lead prices also remained firm, with the LME three-month contract at $1,921/t and cash settlement at $1,868/t on 21 September. At 16:30 pm, lead was indicated at $1,884/t, up 0.56%.

Domestic benchmark moves higher

HZL’s latest revision raises its zinc benchmark by INR 4,000/t, partially reversing the INR 10,800/t reduction announced on 17 September. The benchmark now stands at INR 424,600/t.

The lead benchmark was also raised by INR 2,800/t to INR 214,200/t, following the INR 1,700/t cut announced on 17 September.

The latest revision comes as LME zinc remains above $3,800/t, although rising exchange stocks could weigh on the market. BigMint’s latest physical market assessment remains above HZL’s benchmark, indicating a continued gap between the producer reference price and domestic market levels.

HZL adds 32 mnt to resources and reserves

Hindustan Zinc added 32 million tonnes (mnt) of gross ore Resources & Reserves in FY26, taking its total Resources & Reserves to a record 468.6 mnt. The company completed 464.32 km of exploration drilling during the year, with 88.08% of drill holes intersecting mineralisation.

Ore reserves increased nearly 16% y-o-y to 219.1 mnt from 189.1 mnt in FY’25, while mined metal production reached a record 1.114 mnt in FY26. The company said its Resources & Reserves provide visibility for more than 25 years of mine life.

HZL is also focusing on deeper exploration and resource-to-reserve conversion, while assessing the broader mineral potential of its ore bodies as it moves towards a multi-metal business.

Outlook

Domestic zinc prices will likely track the combined impact of HZL’s revised benchmark, LME price movements and exchange inventory trends. The gap between HZL’s benchmark and physical market assessments will remain a key indicator for domestic price movements in the coming sessions.