India: Zinc ingot prices edge up w-o-w; coated steel rally continues

• HZL cuts offers by INR 4,200/t amid mixed global cues
  
  
• Buyers remain cautious, continue need-based procurement
  
  

India's zinc ingot (99.995%) prices inched up by INR 1,000/t w-o-w to INR 343,000/t ex-Delhi on 14 April, compared with INR 342,000/t a week earlier, supported by stable spot demand and marginally firmer global cues.

The increase came despite a price revision by Hindustan Zinc Limited (HZL), which reduced offers by INR 4,200/t to INR 342,700/t ex-Chanderiya on 13 April, compared with INR 346,900/t on 9 April.

London Metal Exchange (LME) three-month zinc futures remained largely stable w-o-w, closing at $3,324/t on 14 April versus $3,309/t on 8 April, indicating limited directional momentum in global markets. LME stocks, however, rose during the week to 115,925 t, reflecting improved exchange availability.

Most buyers continued to adopt a cautious stance, restricting purchases to immediate requirements amid mixed price signals and uncertainty over near-term trend sustainability.

Spot market remains firm despite HZL cut

Domestic spot offers held steady, with SHG zinc quoted at around INR 337,000/t ex-Mumbai and INR 343,000/t ex-Delhi, in line with prevailing market levels.

Imported material remained elevated, with South Korea-origin SHG zinc (99.995%) quoted at $3,610-3,620/t CFR Nhava Sheva, reflecting continued support from global pricing. Australian-origin material was heard at around INR 361,000/t ex-Delhi.

In the domestic market, PMI deals were reported at INR 302,000-303,000/t, indicating selective buying activity and persistent price sensitivity among downstream consumers.

Downstream alloy prices tracked the firm trend in zinc. Zamak 3 prices were reported at INR 354,000-355,000/t, while Zamak 5 stood at INR 361,000-362,000/t ex-works, supported by stable input costs and steady end-user demand.

Coated steel prices extend rally

Meanwhile, India's coated flat steel prices increased further during the week amid continued supply tightness and cost pressures. Galvanised plain (GP) coil prices rose by INR 400/t w-o-w to INR 81,000/t ex-Mumbai, while pre-painted galvanised iron (PPGI) increased by INR 1,600/t to INR 88,400/t and galvalume prices moved up by INR 1,400/t to INR 91,000/t.

The uptrend was primarily driven by sustained cost pressures, restricted supply availability, and elevated logistics costs. Mills implemented additional price hikes of around INR 3,000-4,000/t and maintained firm offers amid tight market conditions. Ongoing geopolitical uncertainties and volatility in input materials further supported higher pricing, while demand remained uneven across regions, with overall offtake largely moderate.

Outlook

Zinc prices are expected to trade with a slight positive bias, supported by stable LME trends, although HZL's price cut and rising inventories may cap sharp upside. Cautious buying behaviour is likely to persist in the near term.

Meanwhile, coated steel prices are expected to stay firm, backed by supply constraints and elevated cost structures, even as demand remains largely need-based.