- HZL cuts offer price following minor correction in LME
- Market eyes late-July restocking for near-term support
India’s zinc ingot market remained range-bound this week amid muted demand and balanced availability. Zinc ingot (99.995%) was assessed at INR 262,000/t ex-Delhi, down by INR 2,000/t week-on-week by BigMint .
Primary producers maintained offers in a narrow range, tracking firm global cues. On 7 July, Hindustan Zinc Limited (HZL) reduced its official zinc ingot price by INR 1,600/t to INR 273,200/t, aligning with minor corrections in LME values. Traders reported adequate spot availability, though stocking interest was limited. Demand from galvanizers and oxide manufacturers is expected to remain soft until monsoon conditions ease.
Traders reported Hindustan Zinc SHG ingot at INR 262,000/t ex-Delhi, while Australian zinc was quoted at INR 298,000/t by a trader, reflecting a wide premium for imported high-grade material.
Zinc dross was assessed at INR 218,000/t exw-Delhi, with a few landed bookings heard in the INR 220,000-225,000/t range. Zinc tukdi (97-98% Zn) was reported in the INR 195,000-200,000/t range by buyers in north India. Zinc PMI stood at INR 237,000/t.
Market commentary
“The market is still in wait-and-watch mode. Seasonal rains have slowed everything down, especially in the north. Buyers are mostly purchasing only what they need – no one is taking large positions right now due to weak offtake and cash flow delays,” said a Delhi-based zinc trader.
“We’ve seen some pickup in buying from infrastructure and auto component makers, but galvanizers and oxide units are still running at low capacity. Orders are slow, and the rains haven’t helped. It’s not the time for bulk procurement yet,” noted a secondary ingot producer from Punjab.
Global zinc futures snapshot
LME 3-month zinc averaged $2,725/t on 9th july, edging lower on subdued global demand. SHFE zinc August contract hovered around RMB 22,185/t, reflecting cautious sentiment in China. On MCX, zinc August futures traded in the INR 255,000-257,000/t range. Traders remain watchful amid weak downstream offtake, delayed monsoon-linked demand, and limited speculative activity across exchanges.
Outlook
Zinc ingot prices are expected to remain range-bound in the coming weeks as seasonal conditions continue to limit demand. However, select demand recovery in infrastructure and auto segments could emerge by late July, offering mild support. For now, the market is likely to continue operating in a narrow band, with sentiment closely tied to monsoon impact and global price cues.
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