Zinc Declines

Zinc futures fell back below $3,300 per tonne after briefly reaching a one-month high, as uncertainty surrounding the Middle East ceasefire weighed on the broader demand outlook. Sporadic fighting continued across the region, with Israel launching strikes in Lebanon amid disagreements between Iran and the US-Israeli side over whether the ceasefire covers Lebanon. Even so, fundamentals continue to support prices. China’s factory activity returned to expansion, boosting demand expectations for base metals. Additionally, inventories at the Shanghai Futures Exchange dropped by 1% over the past week, while ongoing mine closures and operational disruptions point to short-term supply tightness. However, additional output from projects such as Tara and Kipushi, along with increased production plans from other major producers, is expected to keep the market in a slight surplus.

Zinc futures rose to around $3,340 per tonne, marking their highest level in a month, following an initial US-Iran ceasefire that eased fears of a major geopolitical escalation. The agreement came just before President Donald Trump’s ultimatum to Iran was set to expire, with Trump suspending all military actions for two weeks and Tehran stating that passage through the Strait of Hormuz would be allowed under its military management. Further supporting prices were improving industrial signals and short-term supply tightness. China’s factory activity returned to expansion in March, lifting demand expectations. Supply-side constraints, including low stockpiles and disruptions caused by mine closures and operational delays, also underpinned 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.

Zinc increased to 3354.00 USD/T, the highest since March 2026. Over the past 4 weeks, Zinc gained 0.74%, and in the last 12 months, it increased 30.62%.