- Improved global cues support domestic secondary zinc market
- Zinc oxide prices rise on steady downstream demand
India’s zinc dross and zinc oxide markets witnessed a modest uptick w-o-w as of 6 May 2026, supported by firmer global prices. Benchmark three-month London Metal Exchange (LME) zinc prices increased by $87/t w-o-w to $3,420/t, compared with $3,333/t a week earlier, lending support to domestic secondary zinc markets.
Meanwhile, LME inventories declined by 6,325 t w-o-w to 94,800 t from 101,125 t on 29 April, indicating continued tightness in exchange stocks and supporting overall market sentiment.
Despite the improvement in global cues, domestic trading activity remained largely cautious, with buyers continuing to procure material primarily on a need basis amid ongoing price volatility.
Zinc dross, oxide price movements
Domestic zinc dross prices increased marginally w-o-w to INR 292,000/t ex-Delhi. In western India, prices were reported at around INR 287,000/t ex-Mumbai, reflecting a modest improvement in sentiment following the rise in LME zinc prices.
Meanwhile, zinc oxide (99% Zn) prices rose by around INR 4,300/t w-o-w to INR 280,000/t ex-Delhi. The increase was supported by steady demand from downstream sectors such as rubber, ceramics, and chemicals.
The rise in oxide prices alongside relatively firm dross values kept producer margins largely stable during the week.
Scrap segment trends
In the north Indian zinc scrap market, large-sized Tukdi (97% Zn) prices were reported at around INR 294,000-295,000/t ex-Delhi, while mid-sized Tukdi was heard at INR 289,000-290,000/t.
Scrap prices remained firm in line with the broader market trend, though trading activity was described as moderate. Buyers largely refrained from aggressive stocking despite improving global cues.
Market sentiments
Market participants indicated that the recent recovery in LME zinc prices improved overall sentiment, though procurement activity continued to remain cautious due to uncertainty over near-term price direction.
Sellers maintained firm offers amid relatively tight scrap availability and replacement cost pressures. However, deal activity remained largely balanced, with buyers focusing on immediate consumption requirements rather than inventory build-up.
Outlook
In the near term, zinc dross and oxide prices are expected to remain supported amid firmer LME trends and declining exchange inventories. However, cautious buying activity and volatile global market conditions may continue to limit sharp price increases. Steady downstream demand from the rubber and chemical sectors is likely to provide underlying support to the domestic market.
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