FX.co ★ Zinc Hovers Near 1-Month Low

In June, zinc futures dipped below $2,640 per tonne, marking a low point not seen for a month, influenced by tariffs and broader economic uncertainty which dampened the prospects for galvanization demand—a primary industrial application of zinc. This development occurred as U.S. President Trump escalated tariffs on steel imports to 50%, thus intensifying the demand pressures for ferrous metals in the manufacturing sector of the world's largest economy. This change coincided with a significant rise in domestic stainless steel prices, reducing the urgency to procure zinc due to challenges in sourcing steel. Despite these pressures, futures prices remained significantly above the one-year low of $2,515 recorded in early April. Contributing to the supply constraints, output from Teck Resources' Red Dog Mine in Alaska, the world's largest, experienced a 20% annual decline, reaching 145,300 tonnes in the first quarter. In addition, Australia's pivotal smelter, Nyrstar, announced a 25% reduction in this year's output due to ore shortages, which have led treatment charges to fall to unsustainable levels.