India: Zinc ingot prices edge higher w-o-w tracking firm LME trend; domestic demand remains cautious

• LME zinc extends gains, inventories continue to decline
  
  
• Import offers steady; ample Australian-origin availability weighs on premiums
  
  

India's zinc ingot (99.995%) prices increased moderately w-o-w by around INR 4,200/t ($44/t) to INR 378,000/t ($3,948/t) ex-Delhi on 26 May 2026, supported by firmer global zinc prices and sustained producer pricing discipline, although downstream demand continued to remain largely need-based.

The domestic market continued to track global trends after Hindustan Zinc Limited (HZL), on 25 May 2026, kept zinc ingot prices largely stable while increasing lead ingot prices by INR 1,600/t ($16/t) to INR 228,700/t ($2,397/t). Market participants noted that the absence of aggressive producer-side hikes during the week helped contain sharper upside in domestic zinc prices despite continued strength in LME trends.

On the global front, three-month zinc futures on the London Metal Exchange (LME) strengthened further during the week, rising to $3,578/t on 26 May from $3,527.5/t on 19 May. LME cash settlement prices also increased to $3,567/t. Meanwhile, LME zinc inventories declined to 109,950 t from 112,500 t during the same period, indicating tightening exchange stocks and continued support to bullish market sentiment.

Trading activity remains largely need-based

Domestic trading activity remained cautious despite firmer prices, with buyers continuing to restrict procurement to immediate requirements amid elevated domestic offers and subdued downstream consumption from the galvanising sector.

Market participants indicated that landed Australian-origin ingots were currently available at nearly similar price levels due to ample availability of Australian-origin material in the domestic market. The higher availability reportedly limited any significant premium build-up in imported cargoes despite stronger international zinc prices.

South Korea-origin SHG zinc (99.995%) was heard at around $3,800-3,805/t CFR Nhava Sheva during the week. Australian-origin ingots were indicated at around INR 380,000-381,000/t ex-Delhi, largely in line with prevailing domestic market levels.

Delhi SHG zinc was heard at approximately INR 378,000/t, while PMI deals were reported at around INR 331,000/t. Downstream alloy prices also moved higher in line with primary zinc trends, with Zamak 3 assessed at around INR 388,000-389,000/t and Zamak 5 at INR 395,000-396,000/t ex-works.

Coated steel demand remains subdued

Meanwhile, sentiment in India's coated flat steel segment continued to remain weak amid sluggish booking activity and cautious procurement by end-users.

Market participants indicated that galvanised and coated steel producers continued to face resistance from buyers despite relatively firm zinc input costs, limiting any meaningful improvement in finished steel prices.

Outlook

We expect Zinc prices to remain firm in the near term, supported by stronger LME trends and declining exchange inventories. However, ample material availability in the domestic market and subdued downstream demand are likely to keep spot trade activity cautious and restrict sharper gains in physical premiums.