India: Zinc ingot prices rise w-o-w on firmer LME, but demand stays need-based

• HZL price hike supports market sentiment
  
  
• Ample Australian supply caps import premiums
  
  

Indias zinc ingot (99.995%) prices increased moderately w-o-w by around INR 6,000/t ($63/t) to INR 384,000/t ($4,010/t) ex-Delhi on 3 June 2026, supported by firmer global zinc prices and sustained producer pricing discipline. However, downstream buying remained largely need-based as demand from the galvanising sector stayed subdued.

The domestic market tracked stronger global cues after Hindustan Zinc Ltd (HZL) raised zinc ingot prices by INR 3,000/t ($34/t) on 1 June, reinforcing bullish sentiment. Meanwhile, three-month zinc futures on the London Metal Exchange (LME) strengthened to $3,630/t on 3 June from $3,578/t on 27 May, while LME cash settlement prices increased to $3,610/t. Exchange inventories also rose to 113,300 t from 108,400 t over the same period, continuing to lend support to zinc pricing momentum.

Trading activity remains cautious

Despite firmer prices, domestic trading activity remained largely need-based, with buyers restricting procurement to immediate requirements amid elevated offers and muted downstream consumption. Market participants noted that ample availability of Australian-origin zinc ingots in India capped any sharp premium build-up in imported cargoes despite rising international prices.

South Korea-origin SHG zinc (99.995%) was heard at around $3,900-3,910/t CFR Nhava Sheva during the week, while Australian-origin ingots were indicated at INR 385,000-386,000/t ex-Delhi, broadly aligned with domestic market levels. Delhi SHG zinc was heard at around INR 384,000/t, while PMI deals were reported near INR 332,000/t.

Alloy prices move higher; coated steel demand soft

Downstream alloy prices increased in line with firmer primary zinc trends, with Zamak 3 assessed at around INR 392,000-393,000/t and Zamak 5 at INR 399,000-400,000/t ex-works.

Meanwhile, Indias coated steel market remained subdued in the week ended 28 May, with weak bookings and sluggish demand pressuring prices. GP coil prices declined INR 300/t w-o-w to INR 76,700/t, while PPGI slipped INR 100/t to INR 85,400/t, reflecting continued weakness in zinc-consuming segments.

Outlook

Indias zinc ingot prices are expected to remain firm in the coming week, supported by stronger LME trends and disciplined producer pricing. However, subdued galvanising demand and cautious downstream buying may limit sharper gains unless coated steel consumption improves.