Zinc Hits 11-week High

Zinc futures fell to $3,450 per tonne but remained near their highest level since August 2022, amid tightening near-term supply conditions. LME inventories declined sharply to a one-month low and treatment charges for zinc concentrates dropped, prompted short covering. Continued inventory drawdowns on the Shanghai Futures Exchange and ongoing mine disruptions have further constrained immediate supply. However, the broader outlook remains mixed. Although Peru reported a steep monthly fall in output, global data indicated that the market moved into a small surplus in January. Additional supply from the restart of Boliden’s Tara mine and the ramp-up of production at Ivanhoe Mines’ Kipushi project could also help keep the market broadly balanced going forward. On the demand side, improving industrial activity in China has added to positive sentiment. Meanwhile, investors watch developments in the Middle East, which could shape macroeconomic conditions and influence demand prospects.

Zinc increased to 3484.00 USD/T, the highest since January 2026. Over the past 4 weeks, Zinc gained 12.63%, and in the last 12 months, it increased 31.73%.

Zinc futures climbed toward $3,450 per tonne, hitting its highest level since August 2022 amid concerns over near-term supply tightness. Inventories at the Shanghai Futures Exchange continue to decline, indicating tightening physical availability, while mine closures and operational disruptions have further constrained immediate supply. However, the broader outlook remains mixed, as the restart of Boliden’s Tara mine and the ramp-up of production at Ivanhoe Mines’ Kipushi project are expected to keep the market in a modest surplus. This aligns with data showing that the market moved into surplus in January. Demand conditions also continue to provide support, with forecasts pointing to annual growth of around 2%. Meanwhile, investors are monitoring developments in the Middle East, which could influence broader macroeconomic conditions and, in turn, affect zinc demand sentiment.