Zinc tops $3,830/ton, hits highest since May 2022

Zinc prices climbed above $3,830 a metric ton on Tuesday, reaching their highest level since May 2022, as concerns over limited availability intensified.

The rally has been driven by disruptions at several major mining operations, where operational difficulties and logistical constraints have reduced the pace of supply growth.

HSBC expects global zinc mine output to decline this year, while disruptions at both mines and smelters could keep the market undersupplied.

At the same time, inventories registered by the London Metal Exchange have fallen sharply, while physical supplies in key markets outside China remain particularly tight.

Demand has also provided support, with manufacturing activity in Europe and the US showing signs of a moderate recovery.

Meanwhile, Chinese inventories have risen significantly, creating a notable divergence between the world’s largest consumer and other regions.