India: HZL raises zinc, lead offers as domestic market sentiment remains strong

• HZL raises zinc benchmark by INR 5,500/t, while lead gains INR 800/t
• LME zinc retreats to around $3,879/t following last week’s sharp rally

Hindustan Zinc Ltd (HZL) raised its benchmark zinc ingot price by INR 5,500/t on 31 August, taking its Special High-Grade (SHG) zinc benchmark to INR 434,400/t. The company also increased its lead benchmark by INR 800/t to INR 214,600/t.

Zinc benchmark rises despite softer global prices

BigMint assessed SHG zinc at INR 424,600/t ex-Delhi on 27 August. HZL’s latest benchmark revision takes its zinc offer further higher, reflecting the continued strength in domestic pricing despite some moderation in international zinc prices following last week’s sharp rally.

HZL has increased its zinc benchmark by INR 16,000/t since the previous week’s level of INR 418,400/t, indicating sustained strength in the domestic market.

LME zinc retreats after rapid rise

LME zinc was trading around $3,879/t at 1:05 PM IST on 31 August, remaining broadly stable intraday. The metal retreated on Friday after touching a high of around $3,955/t, as hawkish signals from the US Federal Reserve strengthened the dollar and weighed on non-ferrous metals.

LME zinc three-month prices settled at $3,930/t on 28 August, while exchange inventories stood at 97,950 t, marginally higher by 75 t from the previous session. Despite the recent inventory recovery, zinc stocks remain relatively low compared to levels seen earlier in the year, keeping the broader supply outlook supportive.

Lead benchmark moves higher

HZL raised its lead benchmark by INR 800/t to INR 214,600/t. The latest revision follows the company’s previous increase to INR 213,800/t on 27 August.

LME lead was trading around $1,888/t at 1:05 PM IST, up 0.05% d-o-d. Lead prices have remained relatively resilient, supported by a continued drawdown in exchange inventories.

LME lead stocks declined to 406,250 t on 28 August from 408,500 t on 27 August and were down by 9,550 t compared with 24 August, signalling continued tightening in exchange inventories.

Outlook

HZL’s latest price increase highlights the continued strength in the domestic zinc market, although the pace of further gains could moderate following LME zinc’s retreat from recent highs. Global zinc prices remain sensitive to monetary policy signals and dollar movements, while relatively low exchange inventories could continue to provide underlying support.

For lead, the steady decline in LME inventories remains supportive. However, the relatively smaller movement in international prices suggests a more balanced market compared with zinc in the near term.