FX.co ★ Zinc Near 4-Year High

Zinc futures climbed to around $3,620 per tonne, hovering near a four-year high as near-term supplies tightened. A smelter in Central China is slated for routine maintenance in August, with output expected to decline by 1,000–1,500 tonnes, adding to short-term supply pressures following recent disruptions at key facilities. Glencore’s Kazzinc operation in Kazakhstan has continued running at reduced capacity after an explosion, while Nexa’s Cajamarquilla smelter in Peru is gradually resuming operations following a fire. At the same time, uncertainty persists over production at Boliden’s Garpenberg mine after seismic activity earlier this year.

Further underscoring the tightness in the market, LME zinc inventories remain at their lowest level since May, and Shanghai Futures Exchange warehouse stocks have fallen 0.8% from the previous week. Prices have also found support from a weaker US dollar after the Federal Reserve left interest rates unchanged, making dollar-denominated commodities relatively cheaper for buyers using other currencies.