India: Zinc dross, oxide prices surge w-o-w on strong LME rally; buying remains need-based

• Firm global cues drive sharp domestic price increase
• Zinc oxide rises on steady downstream demand

India’s zinc dross and zinc oxide markets moved up sharply w-o-w as of 22 April 2026, supported by a strong rally in global prices. Benchmark three-month London Metal Exchange (LME) zinc prices increased by $84/t w-o-w to $3,468/t, compared with $3,384/t a week earlier, lending significant cost-push support to domestic secondary zinc products.

Meanwhile, LME inventories declined by 10,625 t w-o-w to 105,850 t, indicating tightening exchange availability and further supporting bullish sentiment.

Despite the firm uptrend, market activity remained cautious, with most buyers continuing to procure on a need basis amid elevated price levels.

Zinc dross, oxide price movements

Domestic zinc dross prices rose sharply by around INR 11,000/t w-o-w to INR 290,000/t ex-Delhi. In western India, prices were reported in the range of INR 284,000-285,000/t ex-works, also reflecting a notable increase in line with global cues.

Meanwhile, zinc oxide (99% Zn) prices increased by INR 5,400/t w-o-w to INR 275,000/t ex-Delhi. The upward movement was supported by steady demand from downstream sectors.

However, the sharper rise in dross prices compared to oxide led to a widening spread, indicating some margin pressure for oxide producers.

Scrap segment trends

In the north Indian zinc scrap market, large-sized Tukdi (97% Zn) prices were reported at INR 290,000-291,000/t ex-Delhi, while regular-sized Tukdi was heard at INR 284,000-285,000/t.

Scrap prices increased in tandem with the broader market uptrend, though trading activity remained moderate as buyers refrained from aggressive stocking.

Market Sentiments

Market participants indicated that while price direction remained firmly upward, procurement activity continued to be largely need-based. Buyers were cautious due to heightened volatility and preferred to avoid building inventories at elevated levels.

Sellers, on the other hand, were seen aligning offers with rising replacement costs, supported by the LME uptrend and tightening global availability.

Outlook

In the near term, zinc dross and oxide prices are expected to remain firm, tracking LME trends and supported by declining inventories. However, cautious buying behaviour and limited demand momentum may keep price gains gradual rather than sharp.