Zinc prices have climbed above $4,000 per tonne for the first time since 2022, driven by mounting supply constraints. Production disruptions at several mines, including operations in China, have intensified concerns about the availability of concentrate, while escalating tensions in the Middle East have curtailed ore shipments from Iran.
Output at major zinc producers such as the Antamina mine in Peru and the Red Dog mine in Alaska has declined as these operations work through lower-grade portions of their ore bodies. Several other producers have also reported weaker production, further tightening supply.
At the same time, LME warehouse inventories remain low by historical standards, and physical zinc availability is particularly constrained outside China. This tightness is reflected in sharply reduced smelter treatment charges, indicating a shortage of zinc concentrate available for processing.
Nonetheless, an increase in zinc exports from China could help ease supply pressures in other key consuming regions.
