FX.co ★ Zinc Retreats

Zinc futures slipped below $3,250 per tonne, retreating from a near three-week high, as uncertainty over the duration of the Middle East conflict weighed on the demand outlook. President Donald Trump said the US would strike Iran “extremely hard” within the next two to three weeks, potentially targeting civilian infrastructure if negotiations fail, even as he suggested the war was “very close” to ending.

Downside pressure was partly offset by signs of improving industrial activity and short-term supply tightness. China’s factory sector returned to expansion in March, bolstering demand prospects for base metals. Inventories on the Shanghai Futures Exchange fell 2.3% over the past week, while low stockpiles and disruptions linked to mine closures and operational delays continued to lend support to prices.

At the same time, the market is expected to remain in a small surplus, as Boliden’s Tara mine restarts and Ivanhoe Mines’ Kipushi project ramps up production.