India: Zinc ingot prices rise slightly as import premiums hold firm

• Need-based buying limits upside despite higher offers
• Australian-origin SHG trades at firm premiums; spot liquidity thin

India’s zinc ingot (99.995%) prices increased by INR 3,000/tonne (t) w-o-w to INR 318,000/t ex-Delhi on 31 December, as per BigMint’s assessment. The uptick was supported by firm import premiums and slightly higher spot offers, though overall buying activity remained muted and largely need-based.

On 29 December, Hindustan Zinc Limited (HZL) kept its zinc ingot prices unchanged at INR 310,600/t ($3,455/t) ex-Chanderiya, despite marginal improvements in spot market sentiment.

Traders indicated that special high grade (SHG) zinc ingots were offered at INR 315,000/t ex-Mumbai, up INR 6,000/t w-o-w, supported by limited availability of imported material. Australian-origin SHG zinc was quoted at a premium of $260/t over London Metal Exchange (LME) prices on a CFR Mundra Port basis amid restricted import arrivals.

In north India, Australian-origin zinc was offered at INR 338,000/t ex-Delhi, up INR 3,000/t w-o-w, reflecting higher replacement costs and steady import premiums.

Market participants noted that most purchases were need-based, with only a handful of large consumers active in the spot market, while year-end holidays further curtailed trading activity, keeping overall liquidity thin.

Global zinc futures snapshot

LME three-month zinc futures remained largely rangebound during the week, trading within the $3,070-3,130/t range. A broadly balanced global supply-demand outlook limited volatility, while firm physical premiums in Asia pointed to pockets of spot tightness despite steady trading activity.

Coated flat steel prices firm on stronger GP demand

Indian coated flat steel prices moved higher in the latest weekly assessment, led by a sharp increase in galvanised plain (GP) coils amid improved demand and firm hot-rolled coil (HRC) prices. GP coils (0.8 mm/CTL, 120 gsm, IS 277) were assessed at INR 62,800/t, up INR 2,000/t w-o-w, supported by stronger inquiries compared with galvalume and PPGI, and a close correlation with HRC prices, which rose INR 1,900/t w-o-w.

Galvalume (0.5 mm/CTL, AZ150, IS 15961) was assessed at INR 75,000/t, up INR 200/t, while PPGI (0.5 mm/CTL, 90 gsm, IS 14246) stood at INR 69,700/t, up INR 300/t. Prices are ex-Mumbai, exclusive of 18% GST.

Outlook

Domestic zinc prices are expected to remain firm in January, supported by firm import premiums and steady global cues, though weak downstream demand and need-based buying may cap any sharp upside. Import availability, particularly of Australian-origin material, will remain a key factor influencing spot prices.