Zinc prices rose to a two-week high on Monday, 26 October 2026, as falling inventories and rising power prices boosted sentiment on the metal used to galvanise steel, Reuters reported. Benchmark three-month zinc on the London Metal Exchange (LME) was up 1.5% at US$3,800.50 a tonne as of 10:30am GMT, after earlier touching US$3,821.50, the highest level since 12 October, according to Reuters. In a post-LME Week note published on Monday, Citi said zinc sentiment appeared neutral to modestly bullish.
The bank noted that while mine supply is likely to grow in 2027, some market participants think the market remains too optimistic about the scale of that growth given underperformance in recent years. Data from the International Lead and Zinc Study Group showed the global refined zinc market swung to a deficit of 3,900 tonnes in August, from a surplus of 27,500 tonnes in July. One trader quoted by Reuters said zinc prices were being supported by high power prices, declining production in Peru, and a drawdown in inventories.
Stocks are tightening across key exchanges. Shanghai Futures Exchange zinc stocks fell 5% week on week to 137,139 tonnes, their lowest level since March, according to bourse data released on Friday. Available, or on-warrant, LME zinc inventories stood at 133,700 tonnes.
The cash LME zinc contract traded at a premium of roughly US$80 a tonne over the three-month forward, pointing to near-term tightness. Exchange data showed that one entity holds between 30% and 40% of LME zinc warrants and cash contracts. Elsewhere in base metals, copper edged up 0.1% to US$14,328.50 a tonne, with little impact from a strike at Teck Resources' Highland Valley copper mine, according to Reuters.
Panmure Liberum analyst Tom Price described Highland Valley as one of Teck's key assets but said it is not particularly large, estimating its production at 100,000 tonnes a year. Aluminium dipped 0.1% to US$3,039.50, lead added 0.6% to US$1,918.50, nickel fell 0.5% to US$15,765, and tin gained 1.1% to US$50,920. Sources: Reuters, London Metal Exchange, Citi, International Lead and Zinc Study Group, Shanghai Futures Exchange, Panmure Liberum.
Source: mining.com.au