On August 20, India's HZL lowered benchmark zinc and lead prices, with zinc down by Rs 3,300 per tonne

en.Wedoany.com Reported - On August 20, Hindustan Zinc Ltd (HZL) reduced its benchmark price for zinc ingots by Rs 3,300 per tonne (equivalent to $38 per tonne), while the lead ingot price was simultaneously lowered by Rs 700 per tonne (equivalent to $8 per tonne). Following the price adjustment on August 17, this marks another revision, reflecting a softening domestic pricing environment.

Following this adjustment, HZL's benchmark price for Special High Grade (SHG) zinc stands at Rs 405,800 per tonne (equivalent to $4,719 per tonne), and the lead benchmark price has been reduced to Rs 211,200 per tonne (equivalent to $2,456 per tonne).

Previously, HZL had raised its zinc benchmark price by Rs 2,600 per tonne to Rs 409,100 per tonne between August 13 and 17. After the latest reduction, the benchmark price is Rs 700 per tonne lower than the August 13 level. As of August 19, BigMint's assessment for domestic Special High Grade zinc was Rs 403,000 per tonne on a Delhi delivery basis, with HZL's latest benchmark price exceeding the spot market assessment by Rs 2,800 per tonne, or approximately 0.7%, narrowing the gap from the previous Rs 5,100 per tonne.

On the international market, as of 2:30 PM Indian Standard Time on August 20, LME zinc was quoted at $3,717 per tonne, up 0.11%, with inventories increasing from 86,525 tonnes on August 18 to 95,050 tonnes on August 19, still below 100,000 tonnes. LME lead was quoted at $1,887 per tonne, with inventories rising to 418,575 tonnes.

The firm international zinc prices and relatively low exchange inventories contrast with HZL's latest domestic price cut, indicating that domestic market conditions have had a greater impact on this adjustment. For lead, HZL's benchmark price has cumulatively declined by Rs 2,600 per tonne from Rs 213,800 per tonne on August 13, while LME lead has remained largely stable at $1,887 per tonne over the same period.

HZL's latest price adjustment indicates a cautious stance in the domestic zinc and lead pricing environment. For zinc, the gap between the benchmark price and the spot market assessment has narrowed, with domestic prices moving closer to spot levels. Future trends will depend on downstream demand, domestic supply conditions, and HZL's subsequent price adjustments.