Zinc prices traded just below $3,900 per tonne after retreating sharply from a more than four-year high, pressured by a broader, sentiment-driven selloff across the base metals complex. The downturn followed reports that the White House was reconsidering plans for import tariffs on refined copper, prompting traders to scale back bullish positions and lock in profits.
Growing expectations of a Federal Reserve rate hike next month strengthened the US dollar, dampening the appeal of dollar-denominated metals. At the same time, the prospect of increased Chinese export deliveries to the LME helped ease some supply concerns.
Zinc had rallied strongly in recent months on tightening supply, with output disrupted at several mines, including in China, while tensions in the Middle East curtailed Iranian ore shipments. LME warehouse inventories remain low by historical standards, and physical availability is especially tight outside China. This tightness is also reflected in significantly lower smelter treatment charges.
