Zinc prices hit four-year high amid global supply constraints

Zinc prices have reached their highest level in over four years due to deepening supply chain constraints. On the London Metal Exchange, zinc prices rose by 2.5 percent to reach $3,980.50 per ton before retracing some gains.

Several factors are driving this surge, including conflicts in the Middle East restricting ore supply from Iran and mining disruptions in various regions, most notably China. Chaos Ternary Futures noted frequent interruptions in the market, though expectations are growing that China may increase refined zinc exports to alleviate global shortages.

Zinc futures have risen 27 percent since the start of the year, outperforming copper and aluminum. Despite a slight recent increase, London Metal Exchange zinc stocks remain below 100,000 tons, which is low by historical standards. This scarcity has impacted smelting fees, which fell to negative $117.50 per ton in August, indicating that smelters have weakened bargaining power against miners due to ore shortages.