Zinc Hits 35-month High

Zinc hovered near $3,500 per tonne, holding its rebound from a seven-week low amid tight supply conditions. Glencore’s Kazzinc facility in Kazakhstan continues to operate at reduced rates after an explosion, while Nexa’s Cajamarquilla smelter in Peru is recovering from fire-related damage. A seismic event at Boliden’s Garpenberg mine earlier this year has also raised concerns about lower production levels for longer. These supply constraints come as the International Lead and Zinc Study Group forecasts a refined zinc deficit of 19,000 tonnes this year. At the same time, the US-Iran peace deal eased concerns over further disruptions to global economic activity and improved the outlook for industrial demand. However, gains remained limited by a firm US dollar amid growing expectations of a US rate hike, making dollar-denominated commodities more expensive for holders of other currencies.

Zinc futures fell to around $3,420 per tonne, the lowest in seven weeks, pressured by a surging US dollar. Expectations of higher US interest rates strengthen the greenback, making dollar-priced commodities less attractive for buyers using other currencies. The downside was partly limited by progress in US-Iran talks, which reduced concerns over further disruptions to global activity and improved the industrial demand outlook. Zinc prices also remained supported by tightening supply conditions following recent disruptions at key facilities. Glencore’s Kazzinc facility in Kazakhstan remains affected by reduced operating rates after an explosion, while Nexa’s Cajamarquilla smelter in Peru has been recovering from fire-related damage. A seismic event at Boliden’s Garpenberg mine earlier this year has also raised concerns about prolonged lower output. These supply constraints come as the International Lead and Zinc Study Group forecasts a refined zinc deficit of 19,000 tonnes this year.

Zinc decreased to 3433.00 USD/T, the lowest since May 2026. Over the past 4 weeks, Zinc lost 2.84%, and in the last 12 months, it increased 26.78%.