Zinc Drops Amid Trade Tensions and Growing Chinese Supply

2025-10-14 10:46 By Joana Ferreira 1 min. read

UK zinc futures fell below $2,940 per tonne in mid-October, their lowest level since September 26, pressured by renewed US-China trade tensions and prospects of rising output.

Beijing announced it had begun collecting special port charges on US-linked vessels, a tit-for-tat response to President Trump’s threat of 100% tariffs on Chinese goods, alongside China’s tightening of rare earth export controls.

Meanwhile, Chinese zinc producers—China being the world’s largest producer—are preparing to sell metal overseas, taking advantage of higher international prices.

Concerns over global oversupply are also weighing on prices.

The International Lead and Zinc Study Group reported that the global supply of refined lead is expected to exceed demand by 91,000 tonnes in 2025, with a slightly larger surplus of 102,000 tonnes in 2026.

However, a sharp drop in inventories may help limit losses: LME zinc stocks have fallen from 230,000 tons in January to just 40,850 tons by October.



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