Zinc futures hit lowest level since early August
Updated
Summary
Zinc futures fell to $3,670 per tonne in mid-October, their lowest level since early August.
The decline was weighed down by the prospect of increased Chinese zinc concentrate availability and a stronger US dollar.
Why it matters
Chinese mine output is expected to rise month-on-month in October as operations resume at mines previously disrupted by accidents and safety inspections.
Western zinc production fell 3.4% year-on-year in the first half of 2026 amid elevated energy costs and tight raw material.
Rising Chinese exports have helped ease tightness in the LME market, but the benchmark spread remains in backwardation, suggesting nearby supply conditions remain relatively tight.
What remains uncertain
Further production risks hinge on the outcome of Nyrstar’s strategic review of its loss-making Budel smelter in the Netherlands.