India: Zinc prices steady as weak demand offsets HZL price revision

• LME prices ease, inventories decline, market activity subdued
  
  
• Import premiums under pressure, buyers stay cautious
  
  

India's zinc ingot (99.995%) prices remained stable w-o-w at INR 353,000/t ex-Delhi on 5 May 2026, as weak downstream demand offset recent producer price revisions.

The domestic market continued to take cues from Hindustan Zinc Limited (HZL), which reduced prices by INR 600/t on 05 May from INR 358,500/t on 04 May, reflecting cautious alignment with global trends while attempting to sustain market sentiment.

On the global front, three-month zinc futures on the London Metal Exchange (LME) showed a slightly softer trend in early May, with prices at $3,360/t on 05 May compared with $3,367/t on 30 April. Meanwhile, LME inventories declined further to 96,250 t from 101,125 t on 29 April, indicating continued drawdowns and providing underlying support to prices despite limited upside momentum.

Trading activity remains weak

Market activity remained largely subdued, with buyers continuing to procure material on a need-only basis amid weak galvanising demand. Participants noted limited downstream activity, with sellers facing resistance in closing deals. Premiums in the import market continued to remain under pressure due to lack of buying interest, with traders unwilling to offer aggressively at lower levels. However, some importers expect a gradual pickup in demand by mid-May.

Imported South Korea-origin SHG zinc (99.995%) was heard at $3,630-3,635/t CFR Nhava Sheva, though firm offers remained scarce. Australian-origin material was indicated at around INR 363,000/t ex-Delhi. PMI deals were heard at approximately INR 320,000/t, reflecting continued price sensitivity among buyers. Downstream alloy prices showed slight firmness, with zamak 3 at INR 366,000-367,000/t and zamak 5 at INR 373,000-374,000/t ex-works.

Coated steel prices decline

Meanwhile, India's coated flat steel prices continued to move lower during the week, reflecting subdued demand conditions and cautious market sentiment. Galvanised plain (GP) coil prices declined by INR 600/t w-o-w to INR 79,100/t ex-Mumbai, with tradable offers heard at INR 78,500-79,500/t. PPGI prices dropped by INR 1,100/t to INR 86,900/t, with offers in the range of INR 86,000-87,500/t.

Galvalume prices remained largely stable at INR 90,200/t, with offers indicated at INR 90,000-90,500/t. The downtrend in GP and PPGI was driven by weak buying interest and adequate supply, while mills largely maintained pricing discipline. Market sentiment remained cautious, with no significant improvement in demand visibility.

Outlook

Zinc prices are likely to remain range-bound in the coming week, supported by continued decline in LME inventories and producer pricing discipline, though weak downstream demand and soft import premiums may cap further upside.

Coated steel prices are expected to remain under pressure amid subdued consumption and sufficient supply, with demand recovery--particularly from the galvanising segment--remaining key to any price stabilisation.