India: HZL raises zinc benchmark as LME prices climb higher

• LME zinc three-month prices rise $25/t even as stocks increase by 6%
• HZL raises lead prices by INR 400/t as LME prices rise, stocks fall

Hindustan Zinc Ltd (HZL) raised its benchmark Special High-Grade (SHG) zinc ingot price by INR 2,000/t to INR 400,300/t on 22 October, compared with INR 398,300/t on 19 October. The company also increased its lead benchmark by INR 400/t to INR 211,600/t from INR 211,200/t over the same period.

BigMint’s SHG zinc assessment stood at INR 436,500/t ex-Delhi on 22 October, placing the domestic market assessment INR 36,200/t above HZL’s latest benchmark.

Global zinc market faces inventory pressure

LME zinc three-month prices increased by $25/t to $3,724/t on 21 October from $3,699/t on 16 October, while cash settlement prices rose to $3,771/t from $3,739/t.

However, LME zinc inventories increased by 6% to 167,825 t from 158,275 t over the same period, adding 9,550 t. Stocks continued to climb through 21 October, indicating increased metal availability on the exchange despite the modest recovery in prices.

At 13:15 IST on 22 October, the latest indicative LME zinc price stood at $3,726/t, down 0.83% on the day. Further inventory additions and price movements remain key factors to monitor.

Lead market firms as exchange stocks decline

LME lead three-month prices rose to $1,904/t on 21 October from $1,891/t on 16 October, while cash settlement prices increased to $1,880/t from $1,854/t.

Lead inventories declined by 2.9% to 329,300 t from 339,275 t over the same period, a reduction of 9,975 t. Rising closing prices alongside falling exchange stocks indicate relatively tighter conditions in the lead market compared with zinc.

At 13:15 IST on 22 October, the indicative LME lead price stood at $1,897/t, down 0.65% on the day. The latest intraday decline suggests some near-term weakness despite the firmer trend in the preceding sessions.

HZL reports strong Q2FY’27 earnings

HZL reported a 142% y-o-y 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 mined metal production rose 5% y-o-y to a record 271,000 t, while refined metal production increased 7% to 264,000 t. Silver production also rose 20% to 173 t.

However, the sustainability of elevated metal prices remains a key consideration for the company’s earnings outlook. Analysts have flagged potential moderation in zinc prices and volatility in silver realisations as risks to future profitability, despite HZL’s strong quarterly performance.