FX.co ★ Zinc Futures Hold at Over 2-Month High

Zinc futures hovered at their highest level in more than two months, trading above $3,400 per tonne, buoyed by improving market sentiment as US-Iran tensions eased and indications of tighter near-term supply emerged. President Donald Trump voiced optimism that a peace agreement with Iran could be reached soon, noting that a second round of talks might take place over the weekend. On the supply front, inventories on the Shanghai Futures Exchange declined by 1.7% over the past week, pointing to reduced availability, while ongoing mine closures and operational disruptions have further constrained immediate supply. Even so, the medium-term outlook remains mixed: the planned restart of Boliden’s Tara mine and the production ramp-up at Ivanhoe Mines’ Kipushi project are expected to keep the market in a modest surplus. This is consistent with data showing that the zinc market moved into surplus in January. On the demand side, conditions remain supportive, with forecasts indicating annual growth of about 2%.