Zinc futures climbed to about $3,340 per tonne, their highest level in a month, after an initial ceasefire between the United States and Iran eased concerns over a major geopolitical escalation. The agreement was reached just before President Donald Trump’s ultimatum to Iran expired, with Trump suspending all military operations for two weeks and Tehran agreeing to reopen the strategic Strait of Hormuz.
Prices were further supported by improving industrial indicators and short-term supply tightness. In particular, China’s factory activity returned to expansion in March, bolstering expectations for demand. On the supply side, low inventories and disruptions stemming from mine closures and operational delays also lent support to the market.
At the same time, the restart of Boliden’s Tara mine and the ramp-up of production at Ivanhoe Mines’ Kipushi project are expected to maintain a modest surplus in the zinc market.
