Zinc Hits Near 4-year High

Zinc futures rose to $3,630 per tonne, the highest in nearly four years, as supply conditions tightened amid recent disruptions. Glencore’s Kazzinc facility in Kazakhstan has been operating at reduced capacity following a fatal explosion, while Nexa’s Cajamarquilla smelter in Peru was temporarily suspended due to fire-related damage, though it has recently announced a gradual resumption of production. These disruptions have heightened concerns about refined zinc availability, especially given already low inventory levels, with LME zinc stocks at 111,250 tonnes, equivalent to less than three days of global consumption. Mine closures and project delays have also added to supply-side strain. However, the supply outlook is expected to gradually improve later in the year, with the anticipated restart of Boliden’s Garpenberg mine in the second quarter, as well as Japan’s Mitsui Mining and Smelting plans to raise output by 3.2% in the first half of the 2026/27 financial year.

Zinc increased to 3635.00 USD/T, the highest since August 2022. Over the past 4 weeks, Zinc gained 7.83%, and in the last 12 months, it increased 34.39%.

Zinc futures rose to $3,570 per tonne, hovering near a more than 3½-year high, supported by tightening supply conditions following recent disruptions. Operations at Nexa’s Cajamarquilla smelter in Peru were temporarily halted after a fire, while Glencore’s Kazzinc plant in Kazakhstan reduced capacity following a blast. Falling inventories and declining treatment charges for zinc concentrate further highlight constrained availability of raw materials. Ongoing mine closures have also added to supply-side strain. Some relief, however, may come from the expected restart of Boliden’s Tara mine, the ramp-up of Ivanhoe’s Kipushi project, and the resumption of output at Garpenberg in the second quarter, all of which could add incremental supply. On the demand side, improving industrial activity in China is offering some support, although ongoing uncertainty in the Middle East continue to weigh on the broader outlook.