Zinc extended its September rally on Wednesday, September 9, 2026, with London Metal Exchange cash zinc settling at USD 4,186 per metric ton, up significantly from USD 3,101 at the start of the month. The sustained price movement reflects tight concentrate supply and low LME inventories, conditions that have kept benchmark treatment charges elevated throughout the period. Latin American zinc producers responded positively to the market strength.
Nexa Resources, the Votorantim-controlled miner with operations in Brazil and Peru, closed at USD 14.25, gaining 0.92% on the session, while Peru's Buenaventura jumped 3.60% to USD 35.39. The outperformance of regional mining equities underscores investor appetite for exposure to zinc's tightening market fundamentals. The price rally is anchored in robust demand from galvanised-steel users and the construction sector, the primary end-markets for coated steel and structural alloys requiring zinc for corrosion protection.
With Peru, Bolivia and Mexico established as major zinc producers, regional miners have become liquid proxies for investors seeking direct exposure to the metal's supply-demand dynamics. Nexa's production guidance points to approximately 310 to 360 thousand tonnes of zinc in concentrate for 2026, with the company expecting about a 6% increase in consolidated zinc production compared to 2025. This growth is driven by higher output at Aripuanã, Atacocha and Vazante, though partially offset by lower volumes at Cerro Lindo and El Porvenir due to mine sequencing and lower grades.
Notably, Aripuanã delivered a record 13,000 tonnes of zinc in the first quarter of 2026, up 4% from the previous record quarter, and is expected to produce 45 to 60 thousand tonnes in 2026, roughly 49% higher than 2025. Buenaventura is also lifting zinc volumes, with first-quarter 2026 zinc production reaching 5,540 tonnes, representing a 16% year-on-year increase, while direct operations output reached 7,379 tonnes, up 27% year-on-year. Benchmark treatment charges for 2026 were set at USD 85 per ton of concentrate, 6% higher than the 2025 level.
These charges represent the payment smelters receive for processing mined ore, and the elevated level signals strong competition among smelters for scarce concentrate. Nexa reported an average LME zinc price of USD 3,241 per ton in the first quarter of 2026, up 14% year-on-year, reflecting the tightness that has continued into September. The month-to-date rally from USD 3,101 to USD 4,186 per ton demonstrates sustained bid strength in the zinc market.
For Latin American investors, Nexa's production guidance and Aripuanã's record output provide company-specific catalysts, while the treatment charges at USD 85 per ton signal robust smelter appetite for concentrate. The key variable to monitor heading forward is whether the month's gains can be sustained without a broader risk-off in industrial metals, as tight supply conditions leave little cushion in the market. Source: Rio Times Online, September 10, 2026.
Source: riotimesonline.com