India: HZL cuts zinc prices by INR 500/t, lead by INR 2,100/t

• HZL SHG zinc prices maintain premium over domestic spot market levels
  
  
• Need-based buying continues as global supply outlook remains supportive
  
  

Hindustan Zinc Ltd (HZL) on 22 June 2026 reduced zinc ingot prices by INR 500/t ($6/t) and lead ingot prices by INR 2,100/t ($24/t) compared with its previous revision announced on 18 June.

Following the revision, HZL's benchmark Special High Grade (SHG) zinc ingot prices were lowered to INR 377,800/t ($4,410/t), while lead ingot prices declined to INR 218,400/t ($2,550/t).

Other revised zinc grades were:

• Special High Grade-Continuous Galvanising Grade (SHG-CGG): INR 379,300/t ($4,427/t)
  
  
• Special High Grade Jumbo (SHG-Jumbo): INR 378,300/t ($4,416/t)
  
  
• High Grade (HG): INR 377,300/t ($4,404/t)
  
  
• Prime Western (PW): INR 375,800/t ($4,387/t)
  
  

On the London Metal Exchange (LME), zinc prices were trading at $3,575/t, up 0.57%, while lead prices remained largely stable at $1,954/t as of 2:00 PM IST. Zinc continued to draw support from expectations of tighter refined metal availability and supply disruptions at several global operations, although market participants remained cautious amid uncertainty surrounding industrial demand recovery in key consuming regions.

Despite the latest reduction, HZL's SHG zinc prices remained above domestic spot market levels. According to BigMint's assessment, zinc ingot prices stood at around INR 376,900/t ex-Delhi on 20 June, placing HZL's benchmark SHG prices at a premium of approximately INR 900/t. Market participants indicated that procurement activity continued largely on a need-based basis, with buyers avoiding aggressive inventory accumulation amid fluctuating international prices.

The broader zinc market continues to receive support from supply-side concerns. Ongoing operational disruptions at several smelting facilities and expectations of a tighter refined zinc balance have underpinned market sentiment in recent weeks. At the same time, low visible inventories across major exchanges have continued to provide support to global zinc prices.

Recent trade data from South Korea indicated some moderation in export activity. The country exported 19,056 tonnes of zinc in May 2026, down 8% year-on-year and significantly lower than April's 44,254 tonnes. However, cumulative exports during January-May rose 24% year-on-year to 170,044 tonnes, reflecting stronger shipments earlier in the year and suggesting that regional demand remained relatively healthy despite the latest slowdown.

Market participants noted that while export momentum has softened, underlying demand from galvanizing and manufacturing sectors across Asia continues to support trade flows. The decline in May shipments is being viewed primarily as a correction following stronger procurement activity during previous months rather than a significant deterioration in consumption fundamentals.

Overall, global zinc prices are expected to remain supported by supply-side disruptions, low inventories and expectations of a tighter refined market balance. However, uncertainty surrounding demand recovery and macroeconomic conditions may continue to limit upside momentum. In the domestic market, buying activity is likely to remain measured, with consumers closely monitoring international price movements and downstream demand conditions.