Zinc Pulls Back
2026-04-28 06:46
By
Judith Sib-at
1 min. read
Zinc futures dropped toward $3,370 per tonne as investors took profits after prices surged to an over 3½-year high driven by tightening near-term supply conditions.
Falling LME inventories and a narrowing Cash-3M contango signaled a firmer market structure, while lower treatment charges for zinc concentrate underscored constraints in raw material availability. Stocks at the Shanghai Futures Exchange also declined 1.8%, while concentrate inventories at ports dropped sharply, further highlighting tight feedstock.
Ongoing mine closures and operational disruptions have added to supply-side pressure, though some relief is expected from the restart of Boliden’s Tara mine and the ramp-up of Ivanhoe’s Kipushi project.
Meanwhile, Peru’s zinc concentrate output showed mixed trends, falling monthly but improving from a year earlier.
On the demand side, improving industrial activity in China supported sentiment, but persistent tensions in the Middle East continued to cloud the broader outlook.