Zinc price tops $4,000/tonne for first time since 2022
Zinc prices surpassed $4,000 per tonne for the first time since 2022 amid supply pressures: production disruptions at mines, tighter Iranian ore shipments, low LME warehouse inventories, and tight physical availability outside China.
Zinc prices surpassed $4,000 per tonne for the first time since 2022, with the market under significant supply pressure. Production disruptions at several mines, including in China, have raised concerns about concentrate availability, while heightened tensions in the Middle East have restricted Iranian ore shipments. Major zinc mines, including Antamina in Peru and Red Dog in Alaska, have seen output decline as they work through lower-grade sections of their ore bodies, while several producers have also reported weaker production. LME warehouse inventories remain low relative to historical levels, and physical zinc availability remains particularly tight outside China.
The tightness is also reflected in sharply lower smelter treatment charges, signalling a shortage of zinc concentrate for processing. Rising zinc exports from China could ease supply conditions in other major markets.