Zinc Advances

Zinc futures rose to around $3,590 per tonne, moving near a four-year high, amid tightening near-term supply while manufacturing data supported demand expectations. Manufacturing indicators from China, Europe, and the US indicated that industrial activity remained resilient despite elevated costs, raising prospects for steady zinc consumption. Recent disruptions across key producers have reinforced supply concerns, with Glencore’s Kazzinc smelter in Kazakhstan continuing to operate at reduced capacity following an explosion, while Nexa’s Cajamarquilla smelter in Peru is gradually restarting operations after a fire-related shutdown. A seismic event at Boliden’s Garpenberg mine earlier this year has also raised the possibility of prolonged lower output. Adding to this, inventories on the Shanghai Futures Exchange fell 2.2% from the previous week, highlighting tightening availability in the physical market.

Zinc futures hovered around $3,540 per tonne, holding the rebound from a seven-week low amid tight supply conditions. Glencore’s Kazzinc facility in Kazakhstan continues to operate at reduced rates after an explosion, while Nexa’s Cajamarquilla smelter in Peru is recovering from fire-related damage. Concerns also persist about extended production disruptions at Boliden’s Garpenberg mine after a seismic event earlier this year. These supply constraints come as the International Lead and Zinc Study Group forecasts a refined zinc deficit of 19,000 tonnes this year. At the same time, the US-Iran peace deal eased concerns over further disruptions to global economic activity and improved the outlook for industrial demand.

Zinc futures fell to around $3,420 per tonne, the lowest in seven weeks, pressured by a surging US dollar. Expectations of higher US interest rates strengthen the greenback, making dollar-priced commodities less attractive for buyers using other currencies. The downside was partly limited by progress in US-Iran talks, which reduced concerns over further disruptions to global activity and improved the industrial demand outlook. Zinc prices also remained supported by tightening supply conditions following recent disruptions at key facilities. Glencore’s Kazzinc facility in Kazakhstan remains affected by reduced operating rates after an explosion, while Nexa’s Cajamarquilla smelter in Peru has been recovering from fire-related damage. A seismic event at Boliden’s Garpenberg mine earlier this year has also raised concerns about prolonged lower output. These supply constraints come as the International Lead and Zinc Study Group forecasts a refined zinc deficit of 19,000 tonnes this year.