- HZL zinc benchmark rises to INR 409,100/t as LME zinc trades above $3,770/t
- Zinc concentrate tightness and sub-100,000-t LME stocks support prices
Hindustan Zinc Ltd (HZL) increased zinc ingot prices by INR 2,600/t ($30/t) on 17 August 2026 compared with its previous revision on 13 August 2026, while reducing lead ingot prices by INR 1,900/t ($22/t) over the same period.
Following the latest revision, HZL’s benchmark Special High Grade (SHG) zinc ingot price rose to INR 409,100/t ($4,754/t), while lead ingot prices declined to INR 211,900/t ($2,464/t).
The latest zinc revision takes HZL’s benchmark further above the INR 400,000/t mark and represents an increase of INR 2,900/t from INR 406,200/t on 10 August. In contrast, the lead benchmark is INR 1,000/t higher than the INR 210,900/t level recorded on 10 August, despite the latest reduction.
On the London Metal Exchange (LME), zinc prices were trading at $3,771/t, up 0.24%, while lead prices stood at $1,905/t, up 0.53%, as of 2:00 PM IST. Zinc remained firm above $3,700/t amid declining exchange inventories and continued concerns over concentrate availability.
LME zinc inventories stood at 97,075 t on 7 August, down from 99,825 t on 3 August, marking a drawdown of 2,750 t, or around 2.8%, in four sessions. Stocks have remained below the 100,000-t mark, reinforcing supply-side support for zinc prices.
The latest HZL revision follows a smaller increase of INR 300/t between 10 and 13 August, when the zinc benchmark rose from INR 406,200/t to INR 406,500/t. The sharper INR 2,600/t increase this week indicates stronger pass-through of firm international prices into the producer benchmark.
BigMint’s domestic zinc assessment on 14 August stood at INR 404,000/t ex-Delhi. This was INR 2,500/t below HZL’s benchmark of INR 406,500/t on 13 August. The latest physical-market assessment for 17 August is yet to be released. Once available, the comparison will provide a clearer indication of whether the producer benchmark has moved ahead of spot-market transactions or whether domestic physical prices have followed the international rally.
The widening gap between producer pricing and physical-market levels could keep downstream buyers cautious on inventory accumulation. With HZL’s zinc benchmark now at INR 409,100/t, consumers are likely to continue adopting need-based procurement while assessing replacement costs and the pace of downstream demand recovery.
The broader zinc market continues to receive support from tight concentrate availability. Treatment charges have fallen sharply, signalling continued pressure on concentrate supply and smelter economics. However, revenues from by-products and the resumption of some smelters following maintenance have helped support refined zinc production.
Demand remains mixed across downstream segments. Galvanised structural steel activity is expected to improve modestly, while galvanised sheet demand remains under pressure from environmental restrictions and weaker orders. Zinc oxide production could see some improvement as previously idled plants restart, whereas die-casting zinc alloy demand remains relatively weak.
Another factor supporting the international zinc market is the reopening of China’s zinc ingot export window. Export economics have remained favourable for shipments to Southeast Asia, while the export window for delivery into LME warehouses has also opened. Continued exports, alongside falling domestic inventories, could help balance regional supply while supporting the broader international zinc market.
The combination of low concentrate treatment charges, a still-open export window and declining LME inventories is therefore keeping the zinc market supported. However, relatively resilient refined output and only limited improvement in downstream consumption could restrict the extent of further price gains.
Meanwhile, HZL reduced its lead ingot benchmark by INR 1,900/t to INR 211,900/t on 17 August, reversing part of the sharp increase recorded earlier in the week. The company’s lead benchmark had risen from INR 210,900/t on 10 August to INR 213,800/t on 13 August before the latest reduction.
LME lead was trading at $1,905/t, up 0.53%, as of 2:00 PM IST. The comparatively softer domestic producer revision, despite the firm intraday LME price, indicates that lead pricing remains more balanced than zinc. Battery and automotive demand continue to provide the underlying consumption base, while the absence of the same degree of supply-side tightness seen in zinc could limit upside momentum.
The latest HZL revision highlights the widening divergence between the zinc and lead markets. Zinc continues to benefit from low exchange stocks, concentrate-market tightness and a supportive international market structure, prompting HZL to push its benchmark to a fresh high above INR 409,000/t. Lead, in contrast, remains relatively range-bound, resulting in a downward producer-price adjustment despite a modest recovery in LME prices.
Overall, domestic zinc prices are expected to remain firm in the near term, supported by elevated LME prices, low exchange inventories and persistent concentrate-market tightness. The reopening of China’s zinc export window could provide additional support to international prices, although improving refined output and muted downstream demand could cap the upside.
Market participants will closely monitor the gap between HZL’s benchmark and BigMint’s physical-market assessment, LME inventories, Chinese demand, concentrate availability, treatment charges and currency movements for further direction.
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