Zinc futures remained above $3,800 per tonne, trading near a one-month high as global mine supply tightens and risks mount around major smelter operations. Recent disruptions at Korea Zinc, Glencore’s Kazzinc, and YoungPoong’s Seokpo smelter have heightened fears of potential supply losses, though the precise impact on refined zinc output is still uncertain.
At the same time, weaker Chinese imports of zinc concentrate have constrained feedstock availability, driving treatment charges to record lows and prompting some smelters to curtail refined zinc production. Supply risks are also building in Western markets: doubts over the future of Nyrstar’s loss-making Budel smelter in the Netherlands are adding to concerns about the broader supply outlook.
Nevertheless, expectations of a rebound in Chinese mine production and an eventual improvement in concentrate availability could alleviate current supply tightness and cap further price gains.
