Zinc futures remained above $3,500 per tonne, trading near their highest level in more than three and a half years, as tightening supply underpinned prices following recent disruptions. Nexa’s Cajamarquilla smelter in Peru was temporarily shut after a fire, and Glencore’s Kazzinc plant in Kazakhstan cut capacity in the wake of an explosion. At the same time, falling inventories and lower treatment charges for zinc concentrate underscored the increasingly limited availability of raw materials, while ongoing mine closures have further intensified supply-side pressures.
Some easing of those constraints may come from additional output expected later this year, including the planned restart of Boliden’s Tara mine, the ramp-up of Ivanhoe’s Kipushi project, and the resumption of production at Garpenberg in the second quarter. On the demand side, firmer industrial activity in China is lending support, but persistent geopolitical uncertainty in the Middle East continues to cloud the broader outlook.
