2025.11.0612:25:50UTC+00Zinc Eases from 1-Year High

Zinc futures in the United Kingdom recently softened to $3,060 per tonne, down from a near one-year peak of $3,310 recorded on November 3rd. This decrease comes amid a general decline in base metals, influenced by weak manufacturing PMI data from China and the United States, which negatively impacted industrial sentiment. Despite this, the reduction in zinc refining capacity has sustained much of the metal's price surge since April. Refined zinc production has decreased by over 2% this year, even with a 6.3% rise in mined output. This trend reflects production restrictions faced by smelters in regions such as Kazakhstan and Japan, with Japan particularly affected by the closure of the significant Toho Zinc Annaka facility. Meanwhile, zinc treatment charges have climbed to approximately $90 per tonne, a significant increase from the negative $115 per tonne at the end of last year, as reported by private surveys. As a result, inventories at the London Metal Exchange have plummeted to 34,000 tonnes, down from 230,500 tonnes at the beginning of the year. This stock level equates to less than a day of global demand, leading to the most pronounced cash to 3-month contract spread witnessed since at least 1997.