FX.co ★ Zinc Remains Near 4-Year High

Zinc futures hovered around $3,560 per tonne, near a four-year high, as reports of a fire at a sulphuric acid unit at a South Korean zinc smelter intensified supply concerns. The incident follows a series of disruptions at major facilities: Glencore’s Kazzinc operation in Kazakhstan continues to run at reduced capacity after an explosion; Nexa’s Cajamarquilla smelter in Peru is gradually restarting following fire-related damage; and uncertainty persists over output at Boliden’s Garpenberg mine after seismic activity earlier in the year.

Prices have also been supported by improving manufacturing data from China, Europe, and the United States, which point to resilient industrial activity despite elevated input costs. Even so, the broader supply–demand picture remains mixed. China’s refined zinc production rose 9.4% year-on-year in May, while inventories on the Shanghai Futures Exchange inched up 0.6%, signaling relatively stable supply conditions. At the same time, renewed tensions in the Middle East have added a layer of uncertainty to the demand outlook for industrial commodities.