en.Wedoany.com Reported - During the week ending May 6, 2026, the Indian zinc ash and zinc oxide markets saw moderate increases, driven by strengthening global prices. The LME benchmark three-month zinc price climbed $87/mt week-on-week to $3,420/mt, a notable rise from $3,333/mt the previous week. Over the same period, zinc inventories in LME-registered warehouses fell by 6,325 tonnes, from 101,125 tonnes on April 29 to 94,800 tonnes. The persistently tight exchange inventory situation further bolstered market sentiment.
Domestic zinc ash prices edged higher week-on-week, with ex-works Delhi prices rising to Rs 292,000/tonne, while ex-works prices in the western Mumbai region were around Rs 287,000/tonne. Zinc oxide (99% purity) prices increased by approximately Rs 4,300/tonne, reaching Rs 280,000/tonne ex-works Delhi, supported by steady procurement from downstream sectors such as rubber, ceramics, and chemicals. The concurrent firmness in zinc oxide and zinc ash prices kept producers' profit margins largely stable. In the northern scrap market, large Tukdi (97% zinc) traded at Rs 294,000 to Rs 295,000/tonne, while medium Tukdi was quoted at Rs 289,000 to Rs 290,000/tonne. Scrap prices generally followed the broader market trend, although traders mostly reported moderate trading activity, with buyers not increasing their restocking efforts despite improved international signals.
Market participants generally believe that the recent LME zinc price recovery has boosted industry sentiment, but downstream purchasing behavior remains cautious due to the still-uncertain short-term price direction. Sellers maintained firm quotes against a backdrop of tight scrap resources and rising replacement costs, while buyers mostly replenished based on immediate production needs, with no significant inventory-building observed. Looking ahead, the strong LME trend and continuously declining exchange inventories are expected to continue underpinning zinc ash and zinc oxide prices. However, constrained by cautious demand and global market volatility, the room for significant short-term price increases is limited. Stable downstream consumption from the rubber and chemical sectors will provide essential fundamental support for the domestic market.
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