FX.co ★ Zinc Holds Rebound

Zinc futures traded above $3,700 per ton, extending their recovery from the more than two-month low of $3,664.9 per ton reached on October 16, supported by ongoing near-term supply tightness. The shortage is particularly pronounced in Western markets, where zinc output declined 3.4% year-on-year in the first half of 2026, pressured by elevated energy costs and constrained raw material availability.

Market participants are also closely monitoring Nyrstar’s strategic review of its loss-making Budel smelter in the Netherlands, as any operational changes there could further curb supply. In China, refined zinc production dropped 1.9% month-on-month and 6.4% year-on-year in September.

Intensifying these supply concerns, zinc inventories tracked by the Shanghai Futures Exchange fell 1.5% from the previous week, providing additional support to prices.