Zinc Prices Soar to Four-Year High Amid Supply Disruptions

Zinc prices have reached their highest level in over four years due to supply disruptions in key markets. The metal, mainly used for galvanizing steel, rose by as much as 2.5% to $3,980.50 per ton on the London Metal Exchange (LME) on Tuesday.

The upward trend is attributed to several factors, including mine supply disruptions in China and curtailed Iranian ore shipments due to the war in the Middle East. Additionally, China is expected to increase exports of refined zinc to alleviate tightness in global markets.

Zinc has now increased for five consecutive months and is up 27% this year, outperforming copper and aluminium. Meanwhile, inventories in LME warehouses have risen recently but remain below 100,000 tons, a historically low level. The tight ore supply has also led to sharply lower smelter treatment charges, falling to minus $117.50 per ton at the end of August.

Copper also strengthened on Tuesday, gaining 0.6% to $14,382 per ton on the LME, supported by large shipments of copper to the US, which have reduced supplies available elsewhere.