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

• LME prices strengthen, inventories rise sharply amid improved sentiment
  
  
• Import premiums largely unchanged, downstream demand remains cautious
  
  

India's zinc ingot (99.995%) prices increased w-o-w by INR 8,900/t to INR 361,900/t ex-Delhi on 12 May 2026, supported by higher global prices and producer-led hikes, although downstream demand continued to remain largely subdued.

The domestic market continued to track Hindustan Zinc Limited (HZL), which increased its zinc ingot prices by INR 2,300/t on 11 May to INR 362,600/t, reflecting stronger alignment with the recent rally in LME zinc prices and improving global sentiment.

On the global front, three-month zinc futures on the London Metal Exchange (LME) strengthened further in the second week of May, rising to $3,503/t on 12 May compared with $3,420/t on 6 May. Meanwhile, LME inventories increased sharply to 111,425 t from 94,800 t during the same period, indicating fresh inflows into exchange warehouses even as prices remained firm amid broader market optimism.

Trading activity remains cautious

Domestic market activity remained cautious despite the sharp rise in prices, with buyers continuing to procure material largely on a need-only basis amid weak galvanising demand and resistance to elevated offers. Market participants noted that both domestic and Australian-origin ingot prices were currently perceived as too high by buyers, which could limit fresh trade activity in the near term.

Import market premiums were heard to be largely unchanged during the week despite the rally in LME prices, reflecting limited buying interest and cautious sentiment among traders. Some inconsistencies were reported in availability of South Korea-origin material following recent maintenance activity at one of the leading producer's end, although overall import supply conditions remained largely stable.

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 372,000-373,000/t ex-Delhi. PMI deals were reported at approximately INR 323,000-324,000/t. Downstream alloy prices also moved higher, with Zamak 3 assessed at INR 381,000-382,000/t and Zamak 5 at INR 388,000-389,000/t ex-works.

Coated steel prices remain under pressure

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

Galvanised plain (GP) coil prices were assessed at INR 78,200/t ex-Mumbai, with tradable offers heard at INR 77,500-79,000/t. Pre-painted galvanised iron (PPGI) prices were assessed at INR 86,000/t, with market offers in the range of INR 85,500-86,500/t amid subdued bookings across key markets.

Galvalume/bare galvalume (BGL) prices were assessed at INR 89,200/t, with offers indicated at INR 88,500-90,000/t. Trading activity in the coated steel segment remained moderate during the week, with limited enquiries and cautious market sentiment continuing to weigh on price momentum, although some mills attempted price hikes.

Outlook

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

Coated steel prices are likely to remain under pressure amid weak consumption and moderate trading activity, with any sustained recovery dependent on improvement in downstream demand from the galvanising and construction sectors.