Zinc prices gained following reports of an industrial accident at Korea Zinc's Onsan smelter, which has raised fresh concerns over near-term supply disruptions. According to Kedia Advisory, zinc settled 1.8% higher at ₹427.65, supported by tight inventories outside China and elevated premiums in physical zinc availability. The LME cash zinc contract premium over the three-month contract remained elevated at $124 per tonne, reflecting restricted physical availability in the market.
Production disruptions at several mining operations have constrained concentrate supply, while geopolitical tensions in the Middle East have further restricted Iranian ore shipments. Major mining operations including Antamina in Peru and Red Dog in Alaska are experiencing lower output as they work through lower-grade ore sections. Additionally, sharply lower smelter treatment charges indicate persistent tightness in concentrate availability.
However, price gains faced headwinds from a stronger US dollar and expectations of further Federal Reserve tightening. Concerns over increasing Chinese exports to LME warehouses also weighed on sentiment, while higher zinc prices have weakened demand and prompted Chinese buyers to remain cautious. On the supply side, major zinc producers reported mixed results.
Nexa reported second-quarter zinc production of 79.3 thousand tonnes, up 8% year-on-year, supported by higher ore grades. Minmetals Resources produced 105,800 tonnes and retained its full-year guidance of 215,000–235,000 tonnes. Glencore reported first-half own-sourced zinc production of 365,600 tonnes, down 21% year-on-year, but maintained its 2026 guidance of 700,000–740,000 tonnes.
Boliden's zinc concentrate production declined 16.8% quarter-on-quarter to 74,200 tonnes, while MMG produced 106,000 tonnes during the first half. The global refined zinc market showed a 31,400-tonne deficit in June, reversing from a 22,400-tonne surplus in May. However, the first-half market remained in a 120,000-tonne surplus compared with 74,000 tonnes during the same period last year.
Technically, zinc witnessed fresh buying interest with open interest rising 2.79% to 2,246 while prices gained ₹7.55. Support is placed at ₹421.4, with a break below this level potentially exposing ₹415. Resistance is seen at ₹431.3, and a sustained move above this level could lead prices toward ₹434.8.
Source: Kedia Advisory, in.investing.com
Source: in.investing.com