Zinc Hits 6-week Low

Zinc futures fell to $3,720 per tonne, their lowest level in six weeks, amid weak demand in China, while a stronger US dollar also weighed on sentiment. Shanghai Metals Market recently reported that orders at traditional galvanising plants remained weak and new orders were insufficient, while operating rates fell sharply around the holidays. The greenback also remained firm, reducing the appeal of dollar-denominated commodities by making them more expensive for buyers using other currencies. Still, zinc remained underpinned by tight supply conditions. China’s zinc production dropped for the first time in nearly a year in August amid smelter maintenance, mining disruptions and negative spot treatment charges. Output also declined at major mines such as Peru’s Antamina and Alaska’s Red Dog as producers work through lower-grade sections of their ore bodies. LME zinc inventories remain historically low, while tight physical availability is particularly evident across Western markets.

Zinc decreased to 3731.00 USD/T, the lowest since August 2026. Over the past 4 weeks, Zinc lost 3.24%, and in the last 12 months, it increased 23.57%.

Zinc held above $3,850 per tonne, remaining close to the $4,037 reached on September 9th, its highest level since April 2022, supported by tightening supply and disruptions across major producing regions. Middle East tensions have restricted Iranian ore supplies, while mine disruptions have further constrained availability. China’s zinc output fell 1.8% year-on-year in August, marking its first annual decline in nearly a year and the lowest level since May 2025, as smelter maintenance, mining disruptions and negative spot treatment charges weighed on production. Output has also been affected at major mines including Peru’s Antamina and Alaska’s Red Dog, where producers are working through lower-grade ore sections. Meanwhile, LME inventories remain historically low, particularly in Western markets. An industrial accident was also reported at Korea Zinc’s Onsan smelter, although no production cuts or shutdowns have been announced.