Zinc futures climbed above $3,600 per tonne, nearing a four-year high, driven by easing geopolitical risks and persistently tight supply. Market sentiment strengthened after the United States and Iran reached an agreement to end their conflict, reducing fears about global economic growth and bolstering expectations for industrial demand.
On the supply side, recent disruptions at major producers have deepened concerns over global availability. The International Lead and Zinc Study Group now forecasts a refined zinc deficit of about 19,000 tonnes this year. Glencore’s Kazzinc operation in Kazakhstan is running at reduced capacity following an explosion, while Nexa’s Cajamarquilla smelter in Peru was temporarily shut down due to fire damage, though a gradual ramp-up of production has recently been announced. Providing some relief, Boliden’s Garpenberg mine is expected to return to production in the second quarter, partially offsetting the broader supply constraints.
