- Oxide demand from rubber, chemical sectors remains stable
- Trading remains cautious amid persistent price volatility
India’s zinc dross and zinc oxide prices increased further w-o-w as of 20 May 2026, supported by firm global cues and sustained strength in London Metal Exchange (LME) zinc prices. Benchmark three-month LME zinc prices averaged around $3,530/t during the week, compared with around $3,437/t a week earlier, lending continued support to domestic secondary zinc markets.
Meanwhile, LME zinc inventories increased moderately to 112,050 t on 20 May from 110,275 t recorded on 13 May. Despite the rise in exchange inventories, firm LME prices and replacement cost pressures continued to support domestic market sentiment.
However, trading activity in the domestic market remained largely cautious, with most buyers continuing procurement on an immediate requirement basis amid persistent price volatility.
Zinc dross, oxide price movements
Domestic zinc dross prices increased by around INR 5,000/t w-o-w to approximately INR 300,000/t ex-Delhi. In western India, zinc dross prices were heard at around INR 293,000-294,000/t ex-Mumbai, reflecting stronger market sentiment following firm LME trends.
Meanwhile, zinc oxide (99% Zn) prices rose sharply by around INR 9,000/t w-o-w to INR 290,000/t ex-Delhi. The increase was supported by stable downstream demand from the rubber, ceramics, and chemical sectors alongside higher raw material costs.
Firm oxide prices and improved realisations in the secondary market supported producer margins during the week.
Scrap segment trends
In the north Indian zinc scrap market, large-sized Tukdi (97% Zn) prices were heard at around INR 303,000-304,000/t ex-Delhi, while mid-sized Tukdi was heard at INR 298,000-299,000/t.
Scrap prices remained firm in line with broader market trends, although trading activity continued to be moderate. Buyers largely avoided aggressive inventory building despite improved global cues.
Market sentiments
Market participants stated that sustained firmness in LME zinc prices continued to improve overall sentiment across the domestic market. However, procurement activity remained cautious as buyers preferred to maintain limited inventories amid uncertain short-term price movements.
Sellers maintained firm offers owing to higher replacement costs and relatively balanced scrap availability. Most transactions continued to be restricted to immediate consumption needs.
Outlook
In the near term, zinc dross and oxide prices are expected to remain supported amid firm LME zinc prices and stable downstream demand fundamentals. However, cautious buying activity and continued volatility in global markets may limit sharper upside movement in the domestic market. Demand from the rubber and chemical sectors is likely to continue providing underlying support to zinc oxide prices.
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