India: Zinc ingot prices edge up w-o-w to 32-month high amid tight supply

• HZL increases its zinc ingot prices by INR 6,900/t
• LME futures rise as inventories fall to multi-year low

India’s zinc ingot (99.995%) prices rose by INR 10,000/tonne (t) w-o-w to INR 302,000/t ex-Delhi, as per BigMint’s assessment, marking a 32-month high. The increase was driven by tight availability in key consumption hubs, higher premiums on Australian-origin material, and limited imports amid a slow physical market.

On 6 October 2025, Hindustan Zinc Limited (HZL) increased its zinc ingot prices by INR 6,900/t ($78/t) to INR 317,000/t ex-Chanderiya, reflecting ongoing supply-side tightness. The price is also around INR 21,500/t higher compared with the same period last month.

Traders highlighted that Special High Grade (SHG) zinc ingots were offered at INR 295,000/t ex-Mumbai, up INR 8,000/t from last week, with Australian-origin lots quoted at a premium of $300-310/t over London Metal Exchange (LME) prices on CFR Mundra Port basis amid limited imports. In north India, Australian zinc was offered at INR 345,000/t ex-Delhi.

Demand remained slow across segments, especially galvanisers. Only a few large buyers were active in the spot market, said a Delhi-based distributor.

Global zinc futures snapshot

LME three-month zinc futures traded higher w-o-w, settling at $3,027/t on 7 October, within an intraday range of $3,020-3,086/t. The increase was primarily driven by continued drawdowns in LME inventories, which fell to 38,200 t, marking a new multi-year low and reinforcing supply-side tightness. Despite bullish cues, intraday volatility persisted as traders booked profits after recent rallies.

Outlook

The Indian zinc market is expected to remain supported by tight supply and elevated import premiums, especially for Australian-origin material. Demand recovery is likely to stay selective, with infrastructure and auto component sectors showing moderate activity, while galvanisers and oxide units remain cautious. Market participants continue to monitor global zinc futures, local supply gaps, and logistics constraints for further price signals.