Zinc Prices Plunge Below $3,800 as Stronger Dollar Weighs on Demand

Zinc prices have fallen to their lowest level in nearly a month, slipping below $3,800 per tonne. The decline is largely attributed to the strengthening US dollar following the Federal Reserve's decision to raise interest rates for the first time in over three years.

The Fed's projections suggest another hike before year-end, which has led to a firmer dollar. As a result, greenback-priced commodities have become more expensive for buyers using other currencies, weighing on demand.

Despite this downturn, zinc supply fundamentals remain relatively tight. Lower mine output and production disruptions have constrained concentrate availability, while sharply lower smelter treatment charges have fallen into negative territory, further underscoring the shortage of feedstock available to refiners.