- HZL raises offers amid weather-driven disruptions
- Duty-free volumes preferred despite logistical issues
India’s zinc ingot (99.995%) prices inched up by INR 10,000/tonne (t) w-o-w to INR 273,000/t ex-Delhi, as per BigMint’s assessment. The uptrend was supported by tight supply, stemming from monsoon-driven disruptions in mining activity, and strong premiums in the imported market as duty-free volumes resumed.
On 21 July 2025, Hindustan Zinc Limited (HZL) raised its zinc ingot prices by INR 4,100/t ($48/t) to INR 276,900/t ($3,209/t). This revision was largely sentiment-driven and based on the previous day’s London Metal Exchange (LME) cash settlement price.
Traders revealed that HZL’s special high-grade (SHG) ingots were traded at INR 269,000/t ex-Mumbai, marking an increase of INR 10,000/t from last week. Meanwhile, Australian zinc continued to attract a notable premium, quoted at INR 297,000-298,000/t, up by INR 4,000/t, due to its higher grade and limited import availability.
HZL has been facing material shortages due to rainfall-induced water blockages at its mining sites, impacting ore extraction and disrupting supply schedules. This has contributed to the recent upward revision in prices, as availability tightened and downstream buyers remained cautious amid uncertain delivery timelines.
In the import market, traders noted that non-duty zinc ingot premiums stood at $160-165/t CIF Nhava Sheva, while duty-free premiums reached $275-280/t over LME. For domestic zinc, premiums hovered at around $168/t on an ex-plant basis, excluding the 5.5% import duty and freight costs — indicating continued preference for duty-free cargoes despite logistical hurdles.
Market commentary
“Australian zinc remains in strong demand due to better quality and low availability. But domestic offtake is yet to see any real momentum,” shared a Mumbai-based importer.
“Volumes from China and Korea are picking up well. If things stay on track, we should see regular inflows of around 12,000-13,000 t per month resuming soon,” said a Mumbai-based importer.
Global zinc futures snapshot
As of 22 July, LME 3-month zinc traded at around $2,830/t, showing little change w-o-w amid a lack of strong macro drivers. The SHFE zinc August contract stood at RMB 22,750/t, marginally higher as Chinese demand showed mild improvement. On MCX, zinc August futures were in the INR 269,000-270,000/t range. Overall, sentiments remained range-bound, with low trade volumes and limited fresh restocking activity.
Outlook
The Indian zinc market remains cautious, with buying interest still limited despite recent price hikes. Traders expect some restocking from downstream sectors such as auto, infrastructure, and galvanising by late July or early August. However, any significant upside in prices will depend on a recovery in offtake and easing of logistics constraints. Until then, zinc prices are expected to remain in a narrow range, influenced more by exchange trends and import dynamics than real demand.
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