Zinc Holds Near Four-Year High on Tight Supply
Zinc futures trade above $3,700 per tonne, near a four-year high, as flooding in China, mine and smelter adjustments, and low LME inventories tighten near-term supply.
Zinc futures traded above $3,700 per tonne, near a four-year high, supported by tightening near-term supply, production disruptions, and low inventories.
Heavy rainfall and flooding across parts of China, the world’s largest zinc producer, have threatened mining and smelting operations.
On top of that, production adjustments at a mine in Southwest China are expected to reduce August zinc concentrate output by around 1,000 tonnes, while maintenance at a smelter in Central China could cut refined production by another 1,000—1,500 tonnes.
Supply concerns have also spread to other major producers.
Glencore’s own-sourced zinc production fell in the first half of 2026, while Boliden’s zinc concentrate output declined quarter-on-quarter and MMG’s production decreased year-on-year in Q2.
Moreover, LME zinc inventories have dropped to their lowest level since December, while high canceled warrants and falling on-warrant stocks signal that less metal is readily available for immediate delivery.