India: Zinc dross, oxide prices rise further on stronger LME support

• Oxide demand from rubber, chemical sectors remains stable
  
  
• Procurement activity remains requirement-driven
  
  

India's zinc dross and zinc oxide prices increased further w-o-w as of 3 June 2026, supported by a stronger rally in London Metal Exchange (LME) zinc prices. Benchmark three-month LME zinc prices averaged around $3,615/t during the week, compared with around $3,532/t a week earlier, providing firm support to domestic secondary zinc markets.

Meanwhile, LME zinc inventories increased to 112,525 t on 3 June from 108,400 t recorded on 27 May. Despite the rise in exchange stocks, the sharp increase in LME zinc prices continued to support sentiment across the domestic market.

However, trading activity remained largely cautious, with buyers continuing to procure material primarily against immediate requirements amid ongoing volatility in global markets.

Zinc dross, oxide price movements

Domestic zinc dross prices increased by around INR 11,300/t w-o-w to approximately INR 314,500/t ex-Delhi. In western India, zinc dross prices were heard at around INR 310,000/t ex-Mumbai, reflecting sustained strength in the secondary market amid higher replacement costs and firm global zinc prices.

Meanwhile, zinc oxide (99% Zn) prices increased by around INR 8,800/t w-o-w to INR 299,600/t ex-Delhi. Stable demand from the rubber and chemical sectors, coupled with higher feedstock costs, continued to support oxide prices during the week.

Firm realisations across the secondary zinc segment supported producer sentiment despite moderate trading volumes.

Scrap segment trends

In the north Indian zinc scrap market, large-sized Tukdi (97% Zn) prices were heard at around INR 304,000-305,000/t ex-Delhi, while mid-sized Tukdi was heard at INR 300,000-301,000/t.

Scrap prices remained firm in line with the broader uptrend in zinc markets. However, buyers largely refrained from aggressive stocking, preferring to maintain limited inventories amid elevated price levels.

Market sentiments

Market participants stated that the sharp rise in LME zinc prices continued to improve sentiment across the domestic market despite the increase in exchange inventories. Elevated replacement costs encouraged sellers to maintain firm offers, while buyers remained cautious due to uncertainty surrounding short-term price direction.

Most transactions continued to be concluded on a need-based basis, with limited speculative buying observed in the market.

Outlook

In the near term, zinc dross and zinc oxide prices are expected to remain supported by firm LME zinc prices and stable downstream demand from the rubber and chemical sectors. However, cautious procurement activity and volatility in global commodity markets may limit aggressive price gains. Market participants are expected to closely monitor LME price trends and inventory movements for further directional cues.