India: Zinc scrap prices remain mixed amid firm alloy demand, cautious sentiment

• Imported diecast scrap gains on firm buying from alloy makers
• Zinc oxide, dross prices edge lower in domestic market

The Indian zinc scrap market recorded mixed price movements during the week ended on 21 January, as firm buying interest from secondary alloy producers supported select grades, while cautious sentiment among importers and weak domestic offtake capped overall gains.

BigMint assessed zinc diecast scrap (Middle East origin) at $2,590/t CFR west coast India, up $60/t w-o-w. Market participants said steady demand from secondary alloy manufacturers helped prevent any price correction, even as importers refrained from aggressively chasing higher offers.

“Alloy makers are covering near-term requirements, but importers are not comfortable booking aggressively at current replacement costs,” a west coast-based trader said. Meanwhile, three-month LME zinc rose to $3,202/t, up $8/t w-o-w, supported by improved global market sentiment.

In the domestic market, zinc oxide (99% Zn) prices declined marginally by INR 800/t w-o-w to INR 244,400/t ex-Delhi, amid slower offtake from downstream consumers, particularly in the rubber and ceramics segments.

Zinc dross prices also softened slightly. BigMint assessed dross at INR 254,700/t ex-Delhi, down INR 300/t w-o-w, while Mumbai prices were heard at INR 250,000/t ex-works. Traders attributed the dip to cautious buying and adequate near-term inventories. “Most consumers are well covered for January, which is limiting fresh enquiries,” a Mumbai-based recycler said.

Meanwhile, 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 254,000/t. Overall, Tukdi prices remained largely stable on a week-on-week basis.

Outlook

While imported scrap values may continue to find support from firm replacement costs and steady alloy demand, weak domestic consumption and cautious importer sentiment could limit further upside for Zinc scrap prices. Market participants will closely track LME zinc movements, currency trends, and downstream demand recovery for clearer price direction in the coming weeks.