Zinc Hovers Near One-Month High

Zinc futures hovered around $3,780 per tonne, near a one-month high, amid tightening global mine supply and concerns over disruptions at major smelters. Operational incidents at Korea Zinc, Glencore’s Kazzinc and YoungPoong’s Seokpo smelter have raised concerns about potential supply losses, although the extent of their impact on refined zinc output remains unclear. Meanwhile, weaker Chinese zinc concentrate imports have tightened feedstock supplies, pushing treatment charges to record lows and prompting some smelters to scale back refined zinc production. Supply concerns have also intensified in Western markets, with uncertainty surrounding the future of Nyrstar’s loss-making Budel smelter in the Netherlands adding to concerns about the supply outlook. However, the prospect of a recovery in Chinese mine production and improved concentrate availability could ease supply tightness and limit price gains.

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 to around $3,850 per tonne, their 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.