India: Zinc scrap, dross prices show mixed trends as LME corrects

• Demand remains stable, but buyers show price resistance
• Improved procurement pushes zinc oxide prices higher

India’s zinc scrap and by-product market witnessed mixed trends during the week ending 5 February 2026, as a sharp correction in LME zinc prices tempered sentiment, even as domestic demand remained stable. BigMint assessed Middle East-origin zinc diecast scrap at $2,640/t CFR west coast India, down $20/t w-o-w, amid steady inquiries but resistance to higher replacement costs.

Domestic zinc dross prices moved higher across key markets, supported by ongoing demand from secondary processors. In north India, zinc dross was assessed at INR 265,100/t ex-Delhi, up INR 5,900/t w-o-w. In western India, prices strengthened to INR 260,000/t ex-works Mumbai, with market participants citing healthy offtake from alloy makers and galvanising-linked consumers.

LME correction, oxide demand offer mixed cues

At the time of reporting, London Metal Exchange (LME) zinc prices stood at $3,276/t, down by $198/t w-o-w from $3,476/t. Despite the decline, prices remained elevated on a broader basis, lending partial cost support to the domestic scrap and dross market. Traders noted that while the LME pullback capped fresh upside, elevated replacement costs continued to prevent sharp corrections.

Zinc oxide (Zn 99%) prices increased by INR 7,600/t w-o-w to INR 254,800/t ex-Delhi. Improved procurement by the ceramics, rubber, and fertiliser sectors supported prices, with buyers stepping up purchases after a brief lull.

In the scrap segment, big-sized zinc Tukdi (Zn 97%) in north India was offered at INR 265,000-266,000/t ex-Delhi, while mid-sized Tukdi (Zn 97-98%) was quoted at INR 262,000-263,000/t, supported by firm input costs and limited spot availability.

Tata Steel schedules zinc dross and dust e-auction on 5-10 Feb’26

Tata Steel IBMD has lined up a series of e-auctions for zinc by-products in February 2026 across Jharkhand. On 5 February, 25 t of zinc dross will be auctioned from the CG2/BAF unit, Jamshedpur. This will be followed on 6 February by the sale of 20 t zinc dross, 40 t zinc ash, and 5 t flux skimming from the Tube Division, Jamshedpur. On 9 February, 12 t zinc dust, 18 t zinc ash, and 15 t zinc dross will be offered at Dhanbad, while around 4 t of zinc dross and zinc dust is scheduled for auction on 10 February from Adityapur, Jamshedpur.

Outlook

Zinc scrap and by-product prices are expected to remain at around current levels in the near term, tracking LME movements and steady industrial demand.