FX.co ★ Zinc Rises to 9-Month High

Zinc futures in the UK have surged towards the $3,000 per tonne level for the first time this year, effectively recovering from sharp declines earlier in the period, as investors shifted focus to the anticipated reduction in supply. According to the International Lead and Zinc Study Group, zinc mining output increased by 6.3% year-on-year in the first half of 2025. However, due to refining bottlenecks, the production of refined zinc fell by over 2%. This trend aligns with production constraints faced by smelters in Kazakhstan and Japan, the latter affected by the shutdown of the significant Toho Zinc Annaka facility. Additionally, treatment charges for zinc have risen to $87.5 per tonne, a significant turnaround from negative figures at the end of the previous year, as reported by the Shanghai Metals Market. As a result, the stockpile of high-grade zinc at the London Metals Exchange has dwindled to just above 31,600 tonnes, a decline from 171,500 tonnes at the year's onset.