Zinc prices have surged past $3,830 per metric ton, their highest level since May 2022, as concerns over restricted supply intensify. The rally is being fueled by disruptions at several major mining operations, where operational challenges and logistical bottlenecks have slowed the pace of supply growth. HSBC now expects global zinc mine output to contract this year, and interruptions at both mines and smelters are likely to keep the market in a state of undersupply.
At the same time, London Metal Exchange-registered inventories have dropped sharply, while physical availability in key markets outside China remains especially tight. On the demand side, zinc has found additional support from a modest rebound in manufacturing activity in both Europe and the United States. In contrast, Chinese inventories have increased substantially, underscoring a clear divergence between the world’s largest consumer and other regions.
