Zinc Holds Decline
2026-04-07 02:24
By
Judith Sib-at
1 min. read
Zinc futures hovered below $3,300 per tonne, holding their retreat from a near three-week high, amid fears that a prolonged Middle East conflict could dampen demand.
President Trump issued an ultimatum to Iran to reopen the Strait of Hormuz, warning that the US would target Iran’s bridges and power infrastructure if Tehran failed to comply.
Iran rejected the ultimatum and a mediated proposal for a temporary ceasefire.
The situation also drove investors toward the US dollar as a preferred safe-haven asset, adding further pressure on dollar-denominated commodities.
Still, the downside was limited by improving industrial signals and short-term supply tightness.
China’s factory activity returned to expansion in March, lifting demand expectations.
Supply constraints, including earlier mine closures and delays, also supported prices.
Meanwhile, the restart of Boliden’s Tara mine and ramp-up of production at Ivanhoe Mines’ Kipushi project are expected to keep the market in a modest surplus.