Zinc Hits 4-week High

Zinc increased to 3858.00 USD/T, the highest since September 2026. Over the past 4 weeks, Zinc lost 0.23%, and in the last 12 months, it increased 25.18%.

Zinc futures rose above $3,870 per tonne, the highest level in a month, supported by declining inventories, high electricity costs and tight near-term supply. Stocks held on the Shanghai Futures Exchange dropped 5% from the previous week to 137,139 tonnes, marking their lowest level since March, while inventories on the London Metal Exchange stood at 133,700 tonnes. Supply pressures have been particularly pronounced in Western markets, where zinc output declined 3.4% year-on-year in the first half of 2026, weighed down by elevated energy prices and limited raw material availability. Uncertainty over the future of Nyrstar’s loss-making Budel smelter in the Netherlands has also raised some concerns over the supply outlook. Meanwhile, China’s refined zinc output fell 1.9% month-on-month and 6.4% year-on-year in September. However, the prospect of a recovery in Chinese mine production and improved concentrate availability could ease supply tightness and cap further price gains.

Zinc futures were above $3,700 per ton, holding onto a rebound from a more than two-month low of $3,664.9 per ton touched on October 16, amid persistent near-term supply tightness. Tight supply is particularly evident in Western markets, where zinc production fell 3.4% year-on-year in the first half of 2026 amid high energy costs and limited raw material availability. Investors are also watching the outcome of Nyrstar’s strategic review of its loss-making Budel smelter in the Netherlands, with potential operational changes posing a threat to supply. Meanwhile, China’s refined zinc production fell 1.9% month-on-month and 6.4% year-on-year in September. Inventories in the Shanghai Futures Exchange declined 1.5% from the previous week, providing further support for prices.