India: Zinc ingot prices rise sharply w-o-w on stronger LME trend; HZL hikes rates

• LME prices remain elevated, inventories edge higher
  
  
• Import offers remain stable despite higher domestic prices
  
  

India's zinc ingot (99.995%) prices increased sharply w-o-w by INR 11,900/t to INR 373,800/t ex-Delhi on 19 May 2026, supported by stronger global prices and aggressive producer-led hikes, although downstream demand continued to remain largely cautious.

The domestic market continued to track Hindustan Zinc Limited (HZL), which increased its ingot prices by INR 9,200/t on 18 May to INR 382,600/t, in alignment with elevated LME zinc prices and continued firm global prices. HZL also raised its lead ingot prices by INR 400/t to INR 228,100/t during the same revision.

On the global front, three-month zinc futures on the London Metal Exchange (LME) remained elevated and touched the 4-year high during the third week of May, touching $3,617/t on 14 May before closing at $3,527.5/t on 19 May, compared with $3,503/t on 12 May. Meanwhile, LME inventories increased further to 112,500 t from 111,425 t during the same period, indicating continued inflows into exchange warehouses even as overall market sentiment remained firm.

Trading activity remains need-based

Domestic market activity remained cautious despite the sharp rise in prices, with buyers continuing to procure material largely on a need-only basis amid resistance to elevated domestic offers and sluggish downstream demand from the galvanising sector.

Market participants noted that both domestic and imported ingot prices were currently perceived as expensive by buyers, limiting fresh spot bookings despite stronger global cues. Import market premiums were largely unchanged during the week, reflecting subdued buying interest and balanced supply conditions.

South Korea-origin SHG zinc (99.995%) was heard at $3,805-3,810/t CFR Nhava Sheva, while Australian-origin ingots were indicated at around INR 378,000-379,000/t ex-Delhi. Delhi SHG zinc was heard at approximately INR 375,000/t, while PMI deals were reported at around INR 329,000/t.

Downstream alloy prices also moved higher during the week, with Zamak 3 assessed at around INR 386,000/t and Zamak 5 at INR 393,000/t ex-works, tracking the rise in primary zinc prices.

Coated steel prices remain under pressure

Meanwhile, India's coated flat steel prices continued to remain under pressure amid weak downstream demand and cautious market sentiment.

Galvanised plain (GP) coil prices were assessed at INR 77,500/t ex-Mumbai, down by INR 700/t w-o-w. Tradable offers were heard at INR 76,500-78,500/t amid continued weak demand.

Pre-painted galvanised iron (PPGI) prices were assessed at INR 85,900/t, down by INR 100/t w-o-w. Offers were heard in the range of INR 85,500-86,500/t, with bookings remaining slow across key markets.

Galvalume/bare galvalume (BGL) prices were assessed at INR 89,300/t, up marginally by INR 100/t w-o-w. Offers were indicated in the range of INR 88,500-90,000/t, while overall trading activity remained moderate.

Outlook

Zinc prices are expected to remain firm in the near term, supported by elevated LME trends and continued producer pricing discipline. However, subdued downstream demand and buyer resistance to higher domestic and import offers may continue to restrict trade volumes and limit aggressive upside in the physical market.