- Zinc benchmark falls below spot prices despite latest hike
- LME zinc, lead prices edge higher amid supply concerns
Hindustan Zinc Ltd (HZL) on 23 July 2026 raised zinc ingot prices by INR 2,500/t ($29/t) and lead ingot prices by INR 1,500/t ($18/t) compared with its previous revision announced on 20 July.
Following the latest revision, HZL’s benchmark Special High Grade (SHG) zinc ingot prices increased to INR 387,600/t ($4,527/t), while lead ingot prices rose to INR 212,500/t ($2,480/t).
On the London Metal Exchange (LME), zinc prices were trading at $3,610/t, up 0.71%, while lead prices stood at $1,901/t, up 0.26%, as of 12:30 PM IST. Both metals edged higher amid tightening near-term supply conditions and optimism surrounding global manufacturing activity, although broader macroeconomic uncertainty continued to influence sentiment across the base metals complex.
According to BigMint’s latest assessment, SHG zinc ingot prices were assessed at INR 387,800/t ex-Delhi on 22 July. Following today’s revision, HZL’s benchmark SHG zinc price stands INR 200/t below the latest assessed domestic spot market level, indicating that the producer’s benchmark remains broadly aligned with prevailing physical market prices.
Market participants said domestic zinc availability remains largely balanced, while buying activity continues to be guided by near-term requirements. The latest price revision comes amid tightening supply conditions and improving sentiment in global zinc markets, although consumers remain cautious following recent price volatility.
Fundamentally, the domestic zinc market continues to receive support from resilient downstream consumption and limited import availability. Global supply concerns have also strengthened market sentiment, with production disruptions at Glencore’s Kazzinc facility in Kazakhstan, Nexa Resources’ Cajamarquilla smelter in Peru and Boliden’s Garpenberg mine weighing on supply expectations.
The International Lead and Zinc Study Group reported that the global zinc market surplus narrowed sharply to 8,700 t in May from 43,400 t in April. Meanwhile, Goldman Sachs expects a modest global surplus in 2026 but forecasts slower mine supply growth from 2027 onward, potentially pushing markets outside China into deficit as demand is projected to grow by around 2% annually.
In China, zinc production increased 9.4% y-o-y in May to 64,000 t, while inventories in Shanghai Futures Exchange warehouses declined 0.28%, indicating stable domestic demand. However, China’s economic growth slowed to a 3.5-year low amid weak domestic consumption, although policymakers reiterated their commitment to maintaining an accommodative monetary policy and increasing support measures to stimulate economic activity.
Lead demand remains supported by battery and automotive applications, while the latest rise in LME lead prices provides additional support to domestic pricing. However, broader demand conditions and developments in the global base metals market will remain key factors influencing the sustainability of further price gains.
In a separate development, Hindustan Zinc will announce its financial results for the first quarter ended 30 June 2026 on 24 July 2026. The company will subsequently hold an earnings conference call at 16:00 hours IST on the same day, where senior management is expected to discuss the company’s financial results and operational performance.
Overall, domestic zinc prices are expected to remain firm in the near term, supported by tightening global supply conditions, stable downstream demand, and limited import availability. HZL’s benchmark price remains broadly aligned with prevailing spot-market levels, reducing the premium-related resistance seen in the previous revision. However, movements in LME prices, the US dollar, Chinese demand, and broader macroeconomic developments will continue to influence domestic pricing trends. Lead prices are likely to remain sensitive to global supply conditions and demand from the battery and automotive sectors.
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