- Domestic zinc prices ease despite HZL raising SHG benchmark
- LME zinc falls below $4,000/t as exchange stocks increase
India’s zinc ingot (99.995%) prices corrected w-o-w amid softer international zinc prices and higher exchange stocks, while downstream demand remained cautious. BigMint’s benchmark assessment stood at INR 438,000/t ex-Delhi on 29 September, down INR 4,000/t w-o-w. In contrast, Hindustan Zinc Ltd (HZL) raised its SHG zinc benchmark by INR 3,800/t on 28 September to INR 429,300/t.
LME zinc prices eased below $4,000/t, while exchange stocks increased significantly during the week. Import indications remained firm, with South Korean duty-free premiums at around $265/t.
Domestic zinc prices correct despite HZL hike
Domestic zinc prices declined w-o-w, despite a higher benchmark from HZL.
BigMint’s benchmark assessment decreased to INR 438,000/t ex-Delhi on 29 September from INR 442,000/t on 22 September. Meanwhile, HZL raised its SHG zinc ingot benchmark by INR 3,800/t on 28 September to INR 429,300/t.
Downstream buying remained measured, with consumers continuing to procure mainly against immediate requirements. The correction in BigMint’s assessment comes despite firm replacement costs and HZL’s upward price revision.
Zinc import indications remain firm
India’s zinc import market remained relatively firm, with South Korean duty-free premiums indicated at around $265/t.
South Korean SHG zinc was indicated at around $4,135-4,140/t, while Korean-origin zinc was heard at around INR 436,000/t in the domestic market. Australian-origin zinc was indicated at around INR 472,000/t.
The premium for South Korean material remains elevated despite softer LME zinc prices, keeping imported replacement costs relatively high.
Downstream buying remains measured
Downstream zinc demand remained cautious, with buyers largely following a need-based purchasing approach.
High zinc prices continue to keep procurement activity measured, with consumers avoiding significant inventory build-up. The correction in domestic zinc prices has provided some relief, although buying interest remains focused on immediate requirements.
Zinc alloy prices ease
Zinc alloy prices declined amid the correction in domestic zinc prices.
In Delhi, Zamak 3 was indicated at around INR 439,900/t, while Zamak 5 was heard at around INR 445,900/t. Zinc PMI prices were indicated at around INR 389,000/t.
Buying activity remained selective, with alloy consumers continuing to procure mainly against immediate requirements.
Coated steel prices continue to increase
India’s coated flat steel trade-level prices increased by around INR 300-1,100/t w-o-w, following recent HRC-CRC price hikes by major domestic steel mills.
BigMint’s Mumbai GP coil assessment increased by INR 300/t w-o-w to INR 83,000/t ex-Mumbai. PPGI rose by INR 1,100/t to INR 89,300/t, while Galvalume increased by INR 700/t to INR 92,500/t.
Despite higher prices, trading activity remained measured, with buyers largely purchasing according to immediate requirements. The increase was supported mainly by higher mill offers and rising raw-material costs.
Outlook
India’s zinc ingot market is expected to remain range-bound in the near term, with softer LME prices and rising exchange stocks weighing on the market, while firm import premiums continue to provide cost support.
LME zinc cash prices stood at $3,957/t on 28 September, down from $4,006/t on 22 September, while three-month zinc declined to $3,852/t from $3,938/t over the same period. LME zinc stocks increased to 123,475 t on 28 September from 114,725 t on 22 September.
South Korean duty-free premiums remained around $265/t, while SHG zinc was indicated at $4,135-4,140/t. With downstream buying still largely need-based, demand is likely to remain a key factor in determining the direction of domestic zinc prices.
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