India: HZL raises zinc, lead offers as global market remains firm

• HZL raises zinc benchmark by INR 12,300/t, lead by INR 400/t
• Zinc prices recover despite continued rise in LME inventories

Hindustan Zinc Ltd (HZL) raised its benchmark zinc ingot price by INR 12,300/t on 10 September, taking its Special High-Grade (SHG) zinc benchmark to INR 437,400/t. The company also increased its lead benchmark by INR 400/t to INR 212,200/t.

The latest revision marks a reversal from HZL’s recent price cuts and reflects renewed firmness in international zinc prices, despite continued volatility across global and domestic metal markets.

HZL zinc benchmark rises sharply

HZL’s SHG zinc benchmark has increased by INR 12,300/t since 7 September, when the company had reduced its offer to INR 425,100/t. The latest benchmark is also INR 3,000/t higher than the INR 434,400/t level recorded on 31 August.

BigMint assessed zinc special high-grade ingots at INR 436,000/t ex-Delhi on 9 September, broadly in line with HZL’s latest benchmark.

The sharp increase in HZL’s offer comes as international zinc prices have recovered, with the LME cash price rising above $4,100/t. Domestic zinc prices are therefore likely to remain elevated, although buyer resistance and demand conditions could limit the extent of further increases.

LME zinc remains firm despite inventory spurt

LME zinc continued to strengthen through 9 September. The three-month LME zinc price rose to $4,036/t on 9 September from $3,975/t on 7 September, while the cash price increased to $4,186/t from $4,157/t.

The cash-to-three-month backwardation stood at around $150/t on 9 September, indicating that nearby supply remained relatively tight despite rising exchange inventories.

Meanwhile, LME zinc inventories increased to 115,675 t on 9 September from 113,100 t on 7 September and 112,175 t on 4 September. The continued stock build points to improving exchange availability, although the persistent backwardation suggests that nearby supply conditions remain comparatively tight.

The combination of firm prices and rising inventories highlights the volatility currently prevailing in the zinc market. Further inventory additions could limit upside, but tight nearby spreads continue to provide support to prices.

Lead benchmark also moves higher

HZL raised its lead benchmark to INR 212,200/t on 10 September from INR 211,800/t on 7 September. Despite the latest increase, the benchmark remains INR 2,400/t below the INR 214,600/t level recorded on 31 August.

BigMint assessed primary lead ingots at INR 207,000/t ex-Delhi on 9 September, indicating a significant gap between the domestic market assessment and HZL’s benchmark.

On the international front, three-month LME lead was at $1,908/t on 9 September, down from $1,914.5/t on 7 September. However, LME lead inventories declined to 384,450 t from 388,450 t over the same period, indicating continued stock drawdowns despite softer three-month prices.

Outlook

HZL’s latest revision signals renewed firmness in domestic zinc pricing following the recent correction. The INR 12,300/t increase in the zinc benchmark comes as LME zinc prices have recovered above $4,000/t, while the sizeable cash-to-three-month backwardation continues to indicate tight nearby supply.

However, LME zinc inventories have continued to rise, reaching 115,675 t on 9 September. Further stock additions could moderate the upside if exchange availability improves more substantially.

In the domestic market, BigMint’s zinc assessment at INR 436,000/t ex-Delhi remains close to HZL’s revised benchmark, suggesting that physical prices are broadly tracking the recent international recovery.

For lead, HZL’s modest INR 400/t increase contrasts with the softer three-month LME price, although declining exchange inventories could continue to provide underlying support. Domestic lead prices remain comparatively weaker, with BigMint’s latest assessment at INR 207,000/t ex-Delhi.