Reasons for The Rise in Zinc Prices Globally

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Zinc prices have risen about 16% over the past two months, driven by supply disruptions and tightening availability. Production was hit by operational issues, including a fire at Nexa’s Cajamarquilla smelter in Peru and reduced output at Glencore’s Kazzinc plant in Kazakhstan. Falling inventories and lower treatment charges have further constrained supply. Although some relief may come from upcoming mine restarts and new projects, demand remains weak, especially from China’s struggling property sector, which uses over half of global zinc in construction. While global mined output rose in 2025, refined production growth was limited and concentrated in China, leaving Western supply tight. LME inventories have recovered modestly but remain far below 2024 highs, keeping market sentiment mixed.

Major Highlights

Zinc rose around 16% over the past two months on supply disruptions
Smelter outages in Peru and Kazakhstan.
Falling inventories & low treatment charges.
Supply growth is concentrated in China.
LME stocks are recovering but still low vs the 2024 peak.

Overall prices are expected to experience moderate bullish momentum in the near term, driven by supply constraints. However, improving output and ongoing uncertainty in the Middle East may hinder sustained price increases.