Zinc prices climbed above $3,950 per ton, reaching their highest level since April 2022 amid increasingly tight supply conditions. The metal recorded a fifth consecutive monthly gain in August and is up 27% year-to-date, outperforming other major base metals.
Supply concerns have been intensified by disruptions at several mines, including operations in China, while geopolitical tensions have further complicated ore flows. The market squeeze is also evident in sharply lower smelter treatment charges, indicating a shortage of zinc concentrate available for processing.
At the same time, inventories in LME warehouses remain low by historical standards, and physical availability outside China is especially constrained. In contrast, Chinese zinc stockpiles have risen substantially, creating a marked divergence between the world’s largest zinc consumer and other key global markets.
