Zinc Rally Hits Seventh Day Amid Signs of Supply Tightness

The zinc market rally has continued for seven days, with prices showing signs of supply tightness on the London Metal Exchange (LME). Despite initial gains, zinc futures eventually declined, mirroring losses in other metals. The decline occurred as European stock markets dropped, putting pressure on all metals.

However, like copper, the zinc market is indicating a near-term supply squeeze, with spot metal commanding a widening premium over futures. This premium suggests that physical buyers are willing to pay more for immediate delivery, potentially signaling tightness in the market.