2026.01.0605:42:12UTC+00Zinc Futures Hit Near 3-Year High

Zinc futures surged to approximately $3,240 per tonne, reaching their highest point since late January 2023. This increase is driven by decreasing inventories and persistent supply challenges. According to the London Metal Exchange (LME), zinc stockpiles fell by 0.2%, from 106,550 tonnes on December 29 to 106,325 tonnes on January 2. Similarly, the Shanghai Futures Exchange (SHFE) reported a 4.3% decline in zinc inventories since December 26, indicating further tightening of supplies. Despite these changes, the International Lead and Zinc Study Group (ILZSG) noted that the refined zinc market deficit shrank to 600 tonnes in October. Furthermore, a number of Chinese mining operations are preparing for routine maintenance shutdowns, which are anticipated to decrease production and limit the availability of concentrate. Noteworthy among these is a mining operation in southwest China, which, having nearly achieved its annual production goals, is planning maintenance activities that may reduce zinc concentrate output by about 700 tonnes in terms of metal content.