Zinc futures hovered above $3,700 per ton, holding on to a rebound from a low of $3,664.9 per ton touched on October 16, a level described as the lowest in more than two months. Near-term supply tightness has continued to support prices, according to Trading Economics. Tight supply is most evident in Western markets, where zinc production fell 3.4% year-on-year in the first half of 2026.
Trading Economics attributes the decline to high energy costs and limited availability of raw materials. Market participants are also watching the outcome of Nyrstar's strategic review of its Budel smelter in the Netherlands, which is loss-making. Trading Economics reports that potential operational changes at the plant pose a threat to supply.
In China, refined zinc production fell 1.9% month-on-month and 6.4% year-on-year in September, Trading Economics reported. Inventories monitored by the Shanghai Futures Exchange declined 1.5% from the previous week, providing further support for prices. Source: Trading Economics, https://tradingeconomics.com/commodity/zinc/news/593270
Source: tradingeconomics.com