Zinc futures settled 0.16% lower at Rs. 414.35, as expectations of a recovery in Chinese mine production and improved concentrate availability raised the possibility of easing supply tightness, according to Kedia Advisory, reporting via Investing.com on November 6, 2026. Losses were limited, however, as global mine output continued to decline, treatment charges remained at record lows, and operational disruptions at major smelters kept supply concerns in focus.
The smelters cited include Korea Zinc, Glencore's Kazzinc, and YoungPoong's Seokpo facility. In China, zinc ore imports have declined since April, tightening raw material availability and prompting smelters to reduce refined metal production. Chinese refined zinc output fell 1.9% month-on-month and 6.4% year-on-year in September, while inventories monitored by the Shanghai Futures Exchange dropped 1.6% from the previous week.
The LME cash zinc premium over the three-month contract widened sharply to $106 per tonne from $45 previously, pointing to immediate supply tightness. Kedia Advisory noted that China's manufacturing activity remained supportive, with the RatingDog Manufacturing PMI at 52.0 in October, marking the eleventh consecutive month of expansion. Uncertainty surrounding Nyrstar's loss-making Budel smelter in the Netherlands, along with elevated Western production costs, added to supply concerns.
The International Lead and Zinc Study Group (ILZSG) reported that the global refined zinc market recorded a deficit of 3,900 tonnes in August, compared with a surplus of 27,500 tonnes in July. The group expects the market to shift to a surplus of 25,000 tonnes in 2027, from an anticipated deficit of 88,000 tonnes in 2026, supported by a 2% increase in refined production and 3% growth in mine output. Global zinc demand is forecast to rise 1.2% to 14.19 million tonnes in 2027, although slower Chinese demand growth amid weakness in the property sector could limit gains.
On the technical side, Kedia Advisory reported that open interest declined 2.41% to 1,539 contracts, indicating long unwinding, while prices fell by Rs. 0.65. Zinc is finding support at Rs.
411, below which prices could test Rs. 408, while resistance is seen at Rs. 418.50.
A sustained move above that level could extend the recovery toward Rs. 422.50. Sources: Kedia Advisory (via Investing.com), International Lead and Zinc Study Group (ILZSG), Reuters (image credit).
Source: in.investing.com