Zinc futures climbed above $3,500 per tonne, extending their recovery from a seven‑week low amid tightening supply conditions. Glencore’s Kazzinc operation in Kazakhstan continues to run at reduced capacity following an explosion, while Nexa’s Cajamarquilla smelter in Peru is still in the process of recovering from fire damage. Earlier this year, a seismic event at Boliden’s Garpenberg mine also heightened concerns that production could remain depressed for an extended period. These disruptions coincide with an International Lead and Zinc Study Group projection for a refined zinc market deficit of 19,000 tonnes this year.
On the demand side, the US‑Iran peace agreement has eased worries about fresh shocks to global economic activity and has brightened the outlook for industrial consumption. Still, the upside for zinc prices has been capped by a strong US dollar, as mounting expectations of a US interest rate hike have made dollar‑denominated commodities more expensive for buyers using other currencies.
