India: HZL raises zinc, lead offers as domestic prices climb

• LME zinc remains firm near $3,900/t despite higher stocks
• Domestic SHG zinc assessment rises to INR 426,000/t

Hindustan Zinc Ltd (HZL) raised its benchmark zinc ingot price by INR 10,500/t ($121/t) on 27 August, taking its Special High-Grade (SHG) zinc benchmark to INR 428,900/t ($4,985/t). The company also increased its lead benchmark by INR 1,200/t to INR 213,800/t ($2,484/t).

Zinc benchmark rises with domestic market

BigMint assessed SHG zinc at INR 426,000/t ex-Delhi on 26 August, up from INR 418,000/t on 24 August. HZL’s revised benchmark is now INR 2,900/t above the latest BigMint assessment, reflecting the sharp strengthening in domestic zinc prices.

LME zinc remains firm

LME zinc three-month prices were around $3,887/t at 1:10 PM IST on 27 August, up 0.05% d-o-d, after settling at $3,933/t on 26 August. Stocks stood at 97,325 t on 26 August, up from 93,250 t on 24 August.

Despite the recent inventory recovery, zinc prices remain supported by tight physical availability and ongoing supply concerns. However, elevated prices are weighing on downstream buying interest.

Lead benchmark edges higher

HZL raised its lead benchmark to INR 213,800/t from INR 212,600/t on 24 August. LME lead was around $1,905/t at 1:10 PM IST on 27 August, down 0.19% d-o-d. LME lead stocks stood at 410,600 t on 26 August, down from 415,800 t on 24 August.

Outlook

HZL’s latest revision reflects continued strength in the domestic zinc market, with the benchmark rising 2.5% in three days. Further gains will depend on LME prices, inventory trends and domestic buying. For lead, the smaller revision indicates relatively moderate market conditions.