Zinc Declines

2026-09-23 03:47 By Judith Sib-at 1 min. read

Zinc prices fell to around $3,880 per ton as a stronger US dollar weighed on the market.

Hawkish Federal Reserve commentary boosted the dollar, making dollar-denominated commodities more expensive for global buyers.

However, the downside was limited by tightening supply and lower Chinese production.

China’s zinc output fell 1.8% year-on-year in August, marking its first decline in nearly a year and the lowest reading since May 2025, amid smelter maintenance, mining disruptions and negative spot treatment charges.

Lower production was also recorded at major mines, including Antamina in Peru and Red Dog in Alaska, as producers work through lower-grade sections of their ore bodies.

At the same time, LME inventories remain historically low, with physical tightness particularly acute in Western markets.

Meanwhile, an industrial accident was reported at Korea Zinc’s Onsan smelter last week, though no production cut, maintenance shutdown or suspension of operations has been announced.



News Stream
Zinc Declines
Zinc prices fell to around $3,880 per ton as a stronger US dollar weighed on the market. Hawkish Federal Reserve commentary boosted the dollar, making dollar-denominated commodities more expensive for global buyers. However, the downside was limited by tightening supply and lower Chinese production. China’s zinc output fell 1.8% year-on-year in August, marking its first decline in nearly a year and the lowest reading since May 2025, amid smelter maintenance, mining disruptions and negative spot treatment charges. Lower production was also recorded at major mines, including Antamina in Peru and Red Dog in Alaska, as producers work through lower-grade sections of their ore bodies. At the same time, LME inventories remain historically low, with physical tightness particularly acute in Western markets. Meanwhile, an industrial accident was reported at Korea Zinc’s Onsan smelter last week, though no production cut, maintenance shutdown or suspension of operations has been announced.
2026-09-23
Zinc Moves Higher
Zinc prices rose to around $3,930 per ton, rebounding from a near one-month low amid relatively tight supply fundamentals. Lower mine output and production disruptions have constrained concentrate availability. Sharply lower smelter treatment charges, which have fallen into negative territory, further underscore the shortage of feedstock available to refiners. Major zinc mines, including Antamina in Peru and Red Dog in Alaska, have seen output drop as they work through lower-grade sections of their ore bodies. LME inventories also remain low by historical standards, while physical zinc availability outside China remains particularly tight. These concerns more than offset pressure from the stronger US dollar following the Federal Reserve’s hawkish rate hike. A firmer dollar typically weighs on dollar-denominated commodities by making them more expensive for buyers using other currencies.
2026-09-17
Zinc Extends Retreat
Zinc prices slipped below $3,840 per tonne, extending their pullback from a more than four-year high, pressured by a stronger US dollar and weak sentiment across the base-metal complex. Investors ramped up bets on a Federal Reserve rate hike later this week after US inflation remained elevated in August, supporting the greenback, which makes dollar-denominated commodities more expensive for buyers using other currencies. Still, losses were limited by tight supply conditions. Production disruptions at several mines, including in China, have raised fears over the availability of zinc concentrates, while Middle East tensions have disrupted Iranian ore shipments. Meanwhile, LME inventories remain historically low and physical zinc availability is particularly tight outside China. Sharply lower smelter treatment charges, which have fallen into negative territory, further underscore the shortage of concentrate available to refiners.
2026-09-14