- HZL reduces ingot prices in line with LME weakness
- Steady, duty-free Korean imports may pressure tags
India’s zinc ingot (99.995%) prices declined by INR 5,000/tonne (t) w-o-w to INR 274,000/t ex-Delhi, as per BigMint’s assessment. The fall reflected softer spot demand and weaker exchange cues, despite a supportive premium structure in imports.
On 18 August 2025, Hindustan Zinc Limited (HZL) reduced its zinc ingot prices by INR 600/t ($7/t) to INR 288,800/t ($3,304/t) ex-Chanderiya, tracking losses on the London Metal Exchange (LME).
Traders highlighted that Special High Grade (SHG) zinc ingots were offered at INR 267,000/t ex-Mumbai, down INR 5,000/t from last week, with limited transactions amid muted buying interest.
In the import market, Australian-origin SHG zinc ingots were quoted at a premium of $350/t over LME at CFR Mundra Port. However, traders highlighted that the premium remains irrelevant for now, given steady inflows of duty-free Korean zinc.
In north India, Australian zinc was offered at around INR 325,000/t ex-Delhi, supported by limited supply and sustained grade preference among select buyers.
Global zinc futures snapshot
As of 19 August, LME 3-month zinc futures traded at $2,774/t, slipping further from last week as macroeconomic uncertainty and weak investor sentiment continued to weigh on base metals.
On the Shanghai Futures Exchange (SHFE), the September zinc contract hovered around RMB 22,550/t, with Chinese spot demand showing little sign of recovery.
In India, MCX zinc August futures held steady in the INR 265,000-266,000/t range, mirroring overseas weakness and muted domestic trade flows.
Korea Zinc posts solid earnings
Korea Zinc, the world’s largest refined zinc producer, posted a 40.9% y-o-y rise in turnover to $5.51 billion in H1CY’25, while operating income grew 16.9% to $381 million. The company has sustained strong operational momentum despite a year-long management rights dispute with its top shareholder Young Poong, which has partnered with MBK Partners in a takeover attempt.
Young Poong hit by operational setbacks
Young Poong Corp. posted sales of $843 million in H1CY’25, down 22% y-o-y, while operating loss more than tripled to $108 million. Its Seokpo refinery faced a shutdown for over two months due to unauthorised wastewater discharges, reducing operating rates below 40%. With deficits in 2023 and 2024, the company expects recovery in H2CY’25 but remains financially strained amid its ongoing battle for control of Korea Zinc.
Outlook
Domestic zinc prices are likely to stay under pressure in the near term, with weak demand, steady Korean inflows, and subdued global sentiment capping any upside. Some support may emerge from constrained Australian supplies, but overall momentum remains bearish.
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