- Soft downstream demand weighs on sentiment
- Decline in LME zinc pressures domestic offers
India’s zinc dross and zinc oxide markets moved down week-on-week on 25 March 2026, tracking a correction in global zinc prices and subdued buying interest across domestic markets. Participants reported cautious sentiment, with procurement largely limited to immediate requirements amid fluctuating input costs.
Benchmark three-month LME zinc stood at $3,050/t, down by $115/t w-o-w from $3,165/t last week, which exerted downward pressure on domestic pricing trends.
Zinc dross & zinc oxide prices edge down
Domestic zinc dross prices decreased by INR 7,700/t w-o-w to INR 267,000/t ex-Delhi. In western India, prices were reported around INR 265,000/t ex-works Mumbai, reflecting weaker buying interest from oxide manufacturers.
Market participants indicated that slower procurement cycles and cautious inventory management by buyers limited trading activity, prompting sellers to revise offers downward in line with LME trends.
Zinc oxide (99% Zn) prices declined by INR 3,800/t w-o-w to INR 256,200/t ex-Delhi, mirroring the drop in feedstock costs. However, producers noted that demand from end-user industries remained stable but price-sensitive.
A north India-based trader stated that buyers are avoiding bulk purchases, opting instead for hand-to-mouth buying amid expectations of further corrections in zinc prices.
In the north Indian scrap segment, big-sized Tukdi (97% Zn) was offered at INR 253,000-254,000/t ex-Delhi, while mid-sized Tukdi (97-98% Zn) was heard at INR 251,000-252,000/t.
Outlook
Zinc dross prices are likely to track LME movements closely, with any further downside in global prices potentially pushing domestic offers below INR 265,000/t in the near term. Zinc oxide producers are expected to maintain cautious procurement, especially as downstream sectors such as rubber and ceramics show limited urgency in restocking.
Additionally, stable galvanizing activity may prevent a sharp fall in dross availability, keeping supply relatively balanced. However, unless buying interest improves, price recovery remains unlikely in the short term.
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