Zinc Near 4-Year High

Zinc futures rose to around $3,620 per tonne, hovering near a four-year high amid tightening near-term supply. A smelter in Central China is scheduled for routine maintenance in August, with output expected to fall by 1,000–1,500 tonnes, adding to near-term supply pressures amid recent disruptions at key facilities. Glencore’s Kazzinc in Kazakhstan continued to operate at reduced capacity following an explosion, Nexa’s Cajamarquilla smelter in Peru was gradually restarting operations after a fire, and uncertainty remained over output at Boliden’s Garpenberg mine after a seismic activity earlier this year. In addition, LME zinc stocks remained at their lowest level since May, while Shanghai Futures Exchange warehouse inventories dropped 0.8% from last week, pointing to tightening available supplies. Prices were also supported by a weaker US dollar after the Federal Reserve kept rates unchanged, making dollar-denominated commodities less expensive for buyers using other currencies.

Zinc futures were at $3,580 per tonne, hovering close to a four-year high amid tightening near-term supply. A fire at a sulphuric acid unit at a South Korean zinc smelter added to worries over near-term supply availability. This followed recent disruptions at key facilities, with Glencore’s Kazzinc in Kazakhstan continuing to run at reduced capacity following an explosion, Nexa’s Cajamarquilla smelter in Peru gradually restarting operations after a fire, and uncertainty over output at Boliden’s Garpenberg mine after seismic activity earlier this year. These developments have reinforced expectations from the International Lead and Zinc Study Group for a 19,000-ton refined zinc deficit this year. Supporting prices further, manufacturing data from China, Europe, and the US pointed to resilient industrial activity despite elevated input costs. Meanwhile, investors are closely monitoring the Middle East conflict as further escalation could weigh on global growth and the demand outlook.

Zinc futures rose to around $3,620 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.