Zinc Hits 4-year High

Zinc prices surpassed $4,000 per tonne for the first time since 2022, as the market faced significant supply pressures. Production disruptions at several mines, including in China, have raised concerns over concentrate availability, while heightened tensions in the Middle East have restricted Iranian ore shipments. Major zinc mines, including Antamina in Peru and Red Dog in Alaska, have seen output decline as they work through lower-grade sections of their ore bodies, while several producers have also reported weaker production. At the same time, LME warehouse inventories remain low relative to historical levels, while physical zinc availability remains particularly tight outside China. The tightness is also evident in sharply lower smelter treatment charges, signaling a shortage of zinc concentrate for processing. However, rising zinc exports from China could provide some relief to supply conditions in other major markets.

Zinc increased to 3986.00 USD/T, the highest since May 2022. Over the past 4 weeks, Zinc gained 6.68%, and in the last 12 months, it increased 38.53%.

Zinc prices rose to around $3,980 per ton in early September, reaching their highest level in over four years, amid tightening supply conditions. The metal posted a fifth consecutive monthly gain in August and is up more than 26% so far this year, outperforming other major base metals. Supply concerns have been fueled by production disruptions at several mines, including in China, while tensions in the Middle East have constrained Iranian ore shipments. At the same time, stockpiles at LME warehouses remain relatively low by historical standards, while physical availability outside China is particularly tight. The squeeze is also reflected in sharply lower smelter treatment charges, pointing to a shortage of zinc concentrate available for processing. Meanwhile, China has begun lifting zinc exports, which could help ease supply tightness in other major markets.