India: Zinc scrap market shows mixed cues even as LME prices strengthen

• Imported diecast scrap steady on firm domestic demand
• Zinc dross rises on limited generation at galvanising units

The Indian zinc scrap market witnessed mixed price movements during the week ending 14 January, tracking a combination of firmer global cues and stable domestic demand. While imported scrap prices remained unchanged, select domestic by-products moved in opposite directions, reflecting supply-side dynamics rather than demand erosion.

BigMint assessed zinc diecast scrap (Middle East origin) at $2,530/t CFR west coast India, unchanged w-o-w. Market participants said firm buying interest from secondary alloy makers capped any downside, even as importers refrained from chasing higher prices. Meanwhile, three-month LME zinc rose to $3,250/t, up $42/t w-o-w, supported by stronger global sentiment.

In the domestic market, zinc oxide (99% Zn) prices declined marginally by INR 500/t w-o-w to INR 245,200/t ex-Delhi. Industry sources clarified that the correction was driven by improved availability and negotiated deals, while end-user demand from rubber and chemical segments remained firm.

Conversely, zinc dross prices strengthened due to limited generation at galvanising units. BigMint assessed zinc dross at INR 255,000/t ex-Delhi, up INR 400/t w-o-w, while Mumbai prices stood at INR 250,000/t ex-works. A north India-based trader noted that steady secondary smelter demand prevented any price correction despite recent volatility in futures.

Big-sized zinc scrap (Tukdi, 97% Zn) was offered at INR 262,000/t ex-Delhi, while mid-sized Tukdi (97-98% Zn) edged down to INR 253,000/t. Overall, Tukdi prices remained largely stable w-o-w.

Tata Steel to auction zinc dross, dust

On the supply front, Tata Steel announced two e-auctions scheduled for 16 January 2026 on the mjunction platform. The company will offer 25 t of zinc dross from Jamshedpur and 4,000 kg of zinc dust from Dhanbad under a dynamic sealed-bid format with visible SBP and as-is-where-is terms.

Outlook

Zinc scrap prices are expected to stay at the current levels next week, with firm domestic demand and LME-linked sentiment offsetting near-term supply additions from auctions.