- Zinc benchmark rises above spot prices following latest hike
- LME zinc prices edge higher as supply concerns persist
Hindustan Zinc Ltd (HZL) raised zinc ingot prices by INR 6,100/t ($71/t) and lead ingot prices by INR 3,800/t ($44/t) on 27 July 2026 compared with its previous revision on 23 July 2026.
Following the latest revision, HZL’s benchmark Special High Grade (SHG) zinc ingot prices increased to INR 393,700/t ($4,600/t), while lead ingot prices rose to INR 216,300/t ($2,527/t).
On the London Metal Exchange (LME), zinc prices were trading at $3,608/t, up 0.56%, while lead prices stood at $1,888/t, up 0.08%, as of 12:30 PM IST. Both metals edged higher amid firm global market sentiment and ongoing supply concerns, although broader macroeconomic uncertainty continued to influence the base metals complex.
According to BigMint’s latest assessment, SHG zinc ingot prices were assessed at INR 387,000/t ex-Delhi on 24 July. Following today’s revision, HZL’s benchmark SHG zinc price stood INR 6,700/t above the latest assessed domestic spot market level, indicating a significant premium over prevailing physical market prices.
Market participants said the sharp increase in HZL’s benchmark price could face resistance from consumers, particularly as domestic spot prices remain below the producer’s revised level. Buying activity is expected to remain focused on near-term requirements, while market participants assess whether physical prices can catch up with the latest producer revision.
Fundamentally, the domestic zinc market continues to receive support from resilient downstream consumption and limited import availability. Global supply concerns remain an important factor for market sentiment, with production disruptions at key mines and smelters continuing to weigh on supply expectations. While expectations of a modest surplus persist for 2026, slower supply growth in subsequent years could tighten the market, particularly outside China, as demand continues to expand.
Lead prices have also received support from firm global market conditions and demand from battery and automotive applications. However, the sharp increase in HZL’s benchmark lead price is likely to be tested by domestic demand conditions and movements in global lead prices.
The latest price hike also comes amid improving producer earnings. HZL reported a 145% y-o-y increase in consolidated net profit to INR 5,469 crore in Q1FY27, while revenue rose 71.6% y-o-y to INR 13,033 crore. The company attributed the strong performance to higher metal prices, increased metal production, lead concentrate sales, higher by-product realisations and a stronger US dollar.
HZL CEO Arun Misra said the company’s debottlenecking initiatives continued to enhance refined metal production and reinforce its position as one of the world’s lowest-cost zinc producers. He added that demand for zinc is expected to remain supported by infrastructure development and the energy transition.
Overall, domestic zinc prices are expected to remain firm in the near term, supported by positive global market sentiment, supply concerns, and strong producer fundamentals. However, HZL’s latest benchmark now stands at a significant premium to prevailing spot-market levels, which could limit immediate consumer acceptance unless physical prices move higher. Movements in LME prices, the US dollar, Chinese demand and broader macroeconomic developments will remain key factors influencing 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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