- North India sees sharper premiums amid limited shipments
- LME zinc futures rise on supply concerns, but MCX softens
India’s zinc ingot (99.995%) prices rose by INR 7,000/tonne (t) w-o-w to INR 290,000/t ex-Delhi, as per BigMint’s assessment. The uptick was driven by supply tightness in north India and firmer overseas premiums, though overall demand remained subdued across sectors.
On 15 September 2025, Hindustan Zinc Limited (HZL) increased its zinc and lead ingot prices by INR 5,200/t ($59/t) and INR 1,400/t ($16/t), respectively, compared to 11 September. Post-revision, prices of zinc ingots were at INR 301,900/t ($3,424/t) and lead ingots at INR 206,100/t ($2,337/t) ex-Chanderiya.
Traders highlighted that Special High Grade (SHG) zinc ingots were offered at INR 283,000/t ex-Mumbai, up INR 7,000/t from last week, with Australian-origin lots quoted at a premium of $650-700/t over LME prices at CFR Mundra Port amid limited imports. In north India, Australian zinc was at INR 340,000/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.
Importers were wary of new contracts after 18 September because the BIS issues are unresolved. This kept premiums high despite the lull in trade, noted a Gujarat-based trader.
Consultation on zinc quality standards, regulations
The Ministry of Mines is organising a stakeholder consultation on 18 September 2025 to discuss Quality Control Orders (QCOs) for metals, including refined zinc. The meeting, chaired by the Economic Advisor, will focus on implementation challenges and industry feedback. Zinc’s quality standards play a vital role in ensuring product reliability, export potential, and adherence to international norms.
Global zinc futures snapshot
As of 16 September 2025, LME three-month zinc futures saw upward momentum w-o-w, trading at $2,956.65/t within an intraday range of $2,944.85-2,975.35/t. This was largely driven by tighter supply, as LME inventories fell to near a two-year low. However, on the Shanghai Futures Exchange (SHFE), the October contract closed only marginally higher at RMB 22,310/t, with rising regional inventories indicating domestic demand was weak despite optimistic sentiment around potential US interest rate cuts. Meanwhile, in India, MCX zinc October futures saw a decline of 0.31% in futures trade, settling at INR 285,000/t, as speculators reduced their positions amid slackened demand in the physical market.
Outlook
Domestic zinc prices are expected to remain supported by tight supply in north India and higher premiums on Australian-origin lots. However, weak demand, especially from galvanisers, and uncertainties over BIS certification may cap gains.
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