India: Zinc ingot prices decline sharply by INR 14,600/t w-o-w; coated steel gains on firm demand

• Buyers delay purchases, hoping for further price drops
• HZL reduces offers by INR 11,300/t as LME prices decline 

India’s zinc ingot (99.995%) prices dropped sharply by INR 14,600/t w-o-w to INR 317,000/t ex-Delhi as of 24 March, compared with INR 331,600/t a week earlier, reflecting weak spot demand and cautious buying. The decline followed a price cut by Hindustan Zinc Limited (HZL), which reduced offers by INR 11,300/t to INR 321,000/t ex-Chanderiya. LME three-month zinc futures declined by $108/t w-o-w to $3,057/t, reflecting weaker global sentiment.

Most buyers adopted a wait-and-watch approach, as they expect prices to decline further.

Spot market weakens amid cautious sentiment

Domestic spot offers mirrored the softer trend, with SHG zinc quoted at INR 312,000/t ex-Mumbai, down from around INR 325,000/t last week. Import premiums for Australian-origin material increased by $10/t to $250/t CFR JNPT, indicating firm overseas cost support despite weak domestic demand.

In the west coast of India, South Korea-origin imported SHG Zn (99.995%) was quoted at $3,295-3,300/t CFR Nhava Sheva.

In north India, Australian-origin zinc was heard at INR 338,000-339,000/t ex-Delhi, while Iran-origin material stood lower at INR 318,000-319,000/t. PMI deals were reported near INR 282,000/t, highlighting selective buying interest and a widening gap across origins.

Downstream alloy prices tracked zinc’s decline. Zamak 3 eased to INR 329,000-330,000/t, while Zamak 5 hovered near INR 334,000/t ex-works. Market participants noted that geopolitical tensions and a stronger US dollar have added uncertainty, prompting buyers to restrict procurement to immediate needs.

Coated steel segment shows resilience

In contrast, India’s coated flat steel segment witnessed price gains driven by strong demand and tight supply. GP coil prices increased by up to INR 2,500/t to INR 73,700/t ex-Mumbai, while PPGI and BGL prices rose to INR 78,700/t and INR 84,000/t, respectively. Mills continued to push prices amid constrained thin-gauge availability, with coated products outperforming HRC and CRC despite a decline in zinc input costs.

Outlook

Zinc prices may stay under pressure amid weak spot demand and HZL’s INR 11,300/t cut, though firm LME at $3,343/t and $250/t import premiums may cap downside. Coated steel prices are likely to remain supported by tight supply and strong bookings.