Zinc futures slipped toward $3,450 per tonne, their lowest level in a month, as investors grew increasingly cautious about demand amid escalating tensions in the Middle East and expectations of tighter US monetary policy. The latest strikes between the United States and Iran have raised the risk of a prolonged conflict and higher inflation, both of which could dampen global growth and curb demand for industrial metals.
Losses were partly contained by tightening supply conditions. Glencore’s Kazzinc operation in Kazakhstan is running at reduced capacity following a fatal explosion, while Nexa’s Cajamarquilla smelter in Peru was temporarily shut after fire-related damage, though the company has recently begun a gradual restart of production. These disruptions have heightened worries about global zinc availability, particularly after the International Lead and Zinc Study Group forecast a refined zinc market deficit of 19,000 tonnes this year. Offsetting some of these concerns, Boliden’s Garpenberg mine is expected to resume production in the second quarter, which should help ease supply pressures.
