FX.co ★ Zinc Prices Dip on Trade Worries, Weak Demand

Zinc futures declined to below $2,650 per tonne on June 10th, marking a consecutive five-day slump as global trade tensions and diminished industrial demand weigh heavily on the market. The ongoing weakness in manufacturing activities, particularly in China, continues to dampen sentiment, heightening worries about decreased consumption. Meanwhile, speculators have been reducing their positions after previous gains, as heightened uncertainty surrounding international trade negotiations and newly imposed US tariffs on selective metals fuels market caution. Despite tightening inventories, notably in China due to smelter maintenance, the overall demand is sluggish, compounded by external macroeconomic pressures, leading to sustained price pressure. Analysts predict that prices will remain within a narrow range shortly, unless there is an improvement in demand signals or a relief in trade tensions.