- Higher primary zinc prices lift secondary values
- Buyers continue need-based procurement
India’s zinc dross and zinc oxide prices recovered w-o-w as of 8 July 2026, supported by firmer London Metal Exchange (LME) zinc prices and higher replacement costs. Market activity, however, remained largely need-based, with consumers restricting purchases to immediate production requirements amid cautious demand visibility.
Benchmark three-month LME zinc prices averaged around $3,536/t during the assessment week ended 8 July, compared with approximately $3,507/t in the previous week. Meanwhile, LME zinc inventories declined to 115,925 t on 8 July from 119,200 t recorded on 1 July, reflecting continued warehouse drawdowns.
The recovery in LME zinc prices improved replacement costs and supported domestic secondary zinc prices during the assessment period. However, procurement activity remained measured, with most transactions concluded only against confirmed orders.
Zinc dross, oxide price movements
Domestic zinc dross prices increased by around INR 2,100/t w-o-w to INR 312,500/t ex-Delhi from INR 310,400/t a week earlier.
Meanwhile, zinc oxide (99% Zn) prices rose by around INR 4,700/t w-o-w to INR 305,000/t ex-Delhi, compared with INR 300,300/t in the previous week.
The gains reflected improved replacement costs following the rebound in international zinc prices, while downstream procurement continued to remain aligned with immediate production requirements.
Scrap segment trends
In the north Indian zinc scrap market, regular-grade Big Tukdi (97-98% Zn) was heard at around INR 304,000-305,000/t ex-Delhi, compared with INR 301,000-302,000/t a week earlier. Mid-sized Tukdi (97-98% Zn) was assessed at INR 299,000-300,000/t, broadly unchanged from the previous assessment.
The firmer scrap market reflected steady procurement by processors and balanced material availability, with improved primary zinc prices lending additional support to replacement costs.
Market sentiment
The domestic secondary zinc market maintained a cautious tone despite the recovery in prices. Consumers largely refrained from inventory building and continued purchasing material only to meet immediate production requirements.
Market participants indicated that mills were largely offering zinc dross in the INR 310,000-312,000/t range, while traders were quoting slightly higher levels. Participants also noted that any correction in LME zinc prices could quickly weigh on domestic secondary zinc values, keeping buyers cautious and limiting fresh bookings.
Trading activity remained moderate, with transactions taking place at prevailing market levels as buyers preferred to wait for clearer price direction.
Outlook
In the near term, zinc dross and zinc oxide prices are expected to remain largely dependent on the direction of LME zinc prices and domestic procurement activity. While continued declines in LME zinc inventories may provide support to global prices, cautious downstream buying and the absence of inventory accumulation are likely to limit any significant upside in the domestic secondary zinc market.
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