FX.co ★ Zinc Bounces from 1-Year Low

Zinc futures hovered around $2,600 per tonne, recouping some losses following a steep drop to a one-year low of $2,560 on April 9. This recovery aligns with a broader upswing in base metals, triggered by a temporary easing of aggressive US tariffs on major trading partners. The White House delayed levies on computers and electronics, showing caution regarding market reactions and supporting industrial inputs' rebound. However, the looming threat of tariffs on copper and semiconductors hindered a more robust recovery. Additionally, escalating steel coil prices, driven by restricted domestic capacity, curtailed zinc demand in the galvanization sector. From a supply perspective, Australia's prominent smelter, Nyrstar, announced a 25% reduction in this year’s output due to ore shortages resulting in unfavorable treatment charges. Correspondingly, China's refined zinc production declined by 7% last year, attributed to diminished processing rates linked to both subdued demand and raw material scarcity.