Zinc Rises to 4-Week High

Zinc futures rose to $3,830 per tonne, the highest level in four weeks, 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.