Zinc prices declined on Monday, September 28, 2026, as Chinese demand remained soft following the Mid-Autumn Festival holiday and macroeconomic headwinds pressured the industrial metal across major exchanges. London three-month zinc closed at US$3,851 a tonne, down 1.09 percent, after trading around US$3,875 in Asian hours, below the late-Friday level near US$3,900. Shanghai November zinc reopened lower at approximately 26,500 yuan per tonne, roughly 0.9 percent below its previous settlement, reflecting subdued Chinese buyer interest.
According to Rio Times' market data, a firmer US dollar and hawkish Federal Reserve signals added additional downward pressure on the metal. The zinc weakness filtered unevenly through Latin American mining equities. Nexa Resources, the Peru and Brazil-based zinc miner and smelter, fell 1.69 percent to US$12.23 in New York trading, directly reflecting zinc's industrial demand decline.
Buenaventura, the Peruvian polymetallic miner, dropped more sharply by 3.38 percent to US$32.05, though primarily due to weakness in gold and silver prices rather than zinc fundamentals alone. China's economic data released Monday underscored demand concerns. Industrial profits at large firms rose only 4.2 percent year on year in August, according to the National Bureau of Statistics, falling short of broader expectations and signalling a slowdown in industrial activity.
Non-ferrous smelting profits did jump 82.9 percent on a margin basis, yet this reflected cost dynamics for smelters rather than evidence of returning construction demand. Macroeconomic factors compounded zinc's decline. The 10-year US Treasury yield rose to 5.24 percent following a 13-week bill auction at 4.110 percent, up from 4.015 percent previously.
The Dallas Fed factory index came in at 9.8 against an expected 1.0, with raw-materials prices advancing eight points to 52.2. Federal Reserve communications, including remarks from Governor Lisa Cook warning of "broadening inflationary pressure later this year," maintained a hawkish tone that supported dollar strength. Zinc's primary industrial application is galvanising, where it protects steel from corrosion, making construction and infrastructure activity critical demand drivers for the metal.
Latin American zinc exposure, concentrated in Peru, Bolivia and Mexico, remains tied to these construction cycles. Analysts noted that the zinc market's near-term direction hinges on whether Shanghai demand recovers after the holiday period. If Chinese buyers remain absent and November zinc holds near current levels around 26,500 yuan per tonne, London prices may test lower levels, with Latin American miners like Nexa likely to follow the broader trend.
Rio Times' analysis identified Nexa as the cleaner Latin American listed proxy for zinc-specific exposure, while Buenaventura's broader precious metals portfolio can obscure or override daily zinc movements. Source: Rio Times, market close September 28, 2026.
Source: riotimesonline.com