Zinc prices slipped in Asian trading on Monday, September 28, 2026, following a solid Friday session that saw the London Metal Exchange cash price settle at US$4,060 per tonne, up 2.0% from the previous day's close of US$3,981 per tonne, according to data from the London Metal Exchange. By approximately 14:25 Shanghai time on Monday, the most-traded November zinc contract on the Shanghai Futures Exchange traded near 26,500 yuan, equivalent to about US$3,950 per tonne, representing a decline of roughly 0.9% from Thursday's settlement. This marked the first trading session following the Mid-Autumn Festival holiday, which closed the Shanghai exchange on Friday.
London three-month zinc traded around US$3,875 in Asian hours according to Sina Finance, approximately 0.6% below late Friday levels near US$3,900 and roughly 2% under Friday's official settlement of US$3,952 per tonne. The underlying price structure reflects competing market dynamics. Tight mine concentrate supply continues to support prices, keeping zinc near its highest levels for the year.
However, softer Chinese demand from galvanisers and rising London Metal Exchange warehouse stocks have tempered buying pressure. Exchange stocks stood at approximately 121,600 tonnes as of the latest reading, up from roughly 95,000 tonnes a month earlier, according to LME data cited in the report. Zinc's year-to-date performance remains strong, with prices approximately 35% higher than a year ago and 1.8% above their level one month prior.
The metal reached US$4,186 per tonne on September 9, 2026, representing the highest level mentioned in the current period. On the supply side, Peru, the world's second-largest zinc mining nation after China, faces production constraints. National zinc output rose only approximately 2% in the first quarter of 2026 according to Peru's Ministry of Energy and Mines data.
The region's major zinc producer Nexa Resources maintained its 2026 zinc production guidance intact following a fire at its Cajamarquilla refinery in Peru earlier this year. Latinamerican equity proxies showed divergent performance. Nexa Resources, which operates zinc mines in Peru and Brazil and represents the region's purest listed zinc exposure, declined 1.58% to US$12.44 per share on the New York Stock Exchange.
The shares trade below the approximately US$15.29 per share valuation implied by Sweden's Boliden's acquisition of Votorantim's controlling stake, announced in August with expected closing in the first quarter of 2027. Compañía de Minas Buenaventura, a Peruvian polymetallic miner with significant zinc exposure through operations at Uchucchacua and Colquijirca, gained 0.97% to US$33.17 per share, reflecting its diversified metals exposure including precious metals. Market analysts note that Monday's decline tests Friday's gains, but the combination of tight concentrate supply and subdued Chinese construction and infrastructure demand is likely to keep zinc supported near current levels.
Further supply disruptions in Peru or Mexico could extend the rally, while a recovery in Chinese construction demand could push prices toward earlier highs reached in early September. Until demand recovers, range trading appears the most probable scenario according to market commentary. Source: Rio Times Market Intelligence, London Metal Exchange, Shanghai Futures Exchange, NYSE, Peru Ministry of Energy and Mines
Source: riotimesonline.com