India: Zinc scrap market steady, dross prices climb

• LME zinc reflects mild gains in global prices
• SAIL dross auction attracts strong bids

India’s zinc scrap and dross market witnessed mixed trends this week, with prices moving in a narrow range amid steady domestic demand and firm global cues. According to BigMint’s latest assessment, zinc diecast scrap (Middle East origin) was priced at $2,280/t CFR West Coast India, unchanged from the previous week.

LME prices rise w-o-w

On the global front, LME zinc was trading at $2,831/t, up by $26/t compared to last week’s $2,805/t, reflecting mild gains in international pricing alongside steady regional fundamentals.

Market updates

In the domestic market, zinc dross was assessed at INR 226,000/t ex-Delhi, up by INR 4,000/t week-on-week, as per BigMint’s latest assessment. In the Mumbai region, sellers reported slightly higher offers in the INR 224,000-228,000/t ex-works range. The zinc oxide (99% Zn) segment saw strong upward movement, with prices heard in the INR 219,000-220,000/t ex-Delhi cash range. Offers rose by INR 3,000-4,000/t, supported by active procurement from end-use sectors such as ceramics, rubber, and fertilizer manufacturing.

On 13 August, Steel Authority of India Ltd (SAIL) concluded an auction for 92 tonnes of zinc dross (including lumps & chips) from its Bokaro steel plant. According to market participants, the total quantity was concluded at INR 229,500/t ex-works, reflecting robust buying interest despite elevated domestic price levels.

In North India, big-sized zinc scrap (Tukdi, 97% Zn) was offered at around INR 222,000/t ex-Delhi, while mid-sized Tukdi (97-98% Zn) held steady at INR 212,000/t. However, actual buying interest for mid-sized Tukdi was mostly heard in the INR 209,000-210,000/t range, indicating resistance from buyers to elevated offer levels.

Outlook

While LME strength may lend support in the near term, buyers remain cautious amid elevated prices and tight scrap availability. Market activity is expected to remain rangebound until a broader demand recovery or easing of supply constraints.