India: Zinc ingot prices decline w-o-w as HZL's downward revision weighs on sentiment

• Domestic zinc prices fall by INR 4,000/t w-o-w
  
  
• HZL's steep price reduction dampens buying
  
  

India's zinc ingot (99.995%) prices declined by INR 4,000/t w-o-w to INR 370,000/t ex-Delhi on 30 June 2026, according to BigMint's assessment. The correction largely reflected Hindustan Zinc Ltd's (HZL) sharp reduction in benchmark prices, which pressured domestic sentiment despite continued tightness in imported material availability. Downstream demand from galvanisers and alloy manufacturers remained largely need-based, with buyers refraining from building inventories amid the ongoing monsoon season and adequate spot availability.

HZL's steep price cut weighs on market

Domestic sentiment turned weaker after HZL reduced zinc ingot prices by INR 8,500/t on 29 June compared with its previous revision announced on 25 June. Following the revision, the producer's benchmark Special High Grade (SHG) zinc prices stood at INR 365,300/t.

Market participants noted that the substantial reduction in HZL prices prompted buyers to delay purchases in anticipation of softer market levels. Although physical availability remained relatively balanced, cautious procurement continued to dominate trading activity, limiting overall market momentum.

Meanwhile, the global market remained comparatively supportive. LME three-month zinc prices increased to $3,546/t on 30 June from $3,500/t a week earlier, while cash settlement prices rose to $3,565.5/t from $3,503/t over the same period. LME zinc inventories declined further to 119,825 t from 123,150 t, indicating continued drawdowns in exchange stocks and reflecting tighter global availability.

Import market remains supported by tight availability

Activity in the imported zinc market remained moderate as overseas supply constraints continued to support offers despite subdued domestic buying.

South Korean premiums were heard around $270/t, largely unchanged from the previous week, reflecting continued tightness in the concentrate market and limited export availability from key Asian suppliers.

Australian-origin zinc ingots were offered near INR 383,000/t ex-Delhi, while Korean-origin material was heard at around INR 367,000-368,000/t, providing competitive alternatives for domestic consumers.

Market participants indicated that import availability remained constrained, with lower export volumes from major Asian producers continuing to support premiums. However, weak domestic consumption limited the willingness of buyers to book large import volumes.

Alloy and coated steel market update

Downstream alloy prices softened in line with the broader correction in zinc values. Zamak 3 was assessed at INR 374/kg, while Zamak 5 stood at INR 381/kg ex-works. Demand from die-casting and engineering sectors remained moderate, with most consumers continuing to procure only against confirmed orders.

In the coated steel segment, market trends remained mixed. BigMint's benchmark assessment for Mumbai GP coil (0.8mm/CTL, 120 GSM, IS 277) remained stable w-o-w at INR 75,300/t, as balanced supply and limited spot transactions kept prices unchanged.

Mumbai PPGI (0.5mm/CTL, 90 GSM, IS 14246) increased by INR 300/t to INR 85,500/t, supported by improved order inflows from roofing and pre-engineered building (PEB) segments along with firmer producer offers.

Meanwhile, Mumbai BGL (0.5mm/CTL, 1220mm, AZ150) declined by INR 300/t to INR 89,700/t, reflecting competitive offers and slower bookings amid cautious buyer sentiment.

Outlook

India's zinc ingot market is expected to remain largely range-bound in the near term. While HZL's aggressive price reduction has weighed on domestic sentiment, tightening global inventories, firm LME prices and constrained import availability are likely to provide underlying support. However, weak downstream demand, monsoon-related disruptions and continued need-based procurement are expected to limit any sharp upside. Market participants will closely monitor HZL's pricing strategy, overseas supply developments and post-monsoon demand recovery for clearer market direction.