Zinc futures have risen above $3,450, reaching their highest level since August 2022 amid mounting concerns over near-term supply tightness. Inventories on the Shanghai Futures Exchange continue to fall, signaling a shrinking pool of available physical metal, while mine closures and operational disruptions are further constraining immediate supply.
Even so, the medium-term outlook remains mixed. The planned restart of Boliden’s Tara mine and the ramp-up of output at Ivanhoe Mines’ Kipushi project are expected to keep the global zinc market in a modest surplus, consistent with data indicating that the market moved into surplus in January.
On the demand side, conditions remain broadly supportive, with forecasts pointing to annual growth of around 2%. At the same time, investors are closely tracking developments in the Middle East, which could reshape broader macroeconomic conditions and, in turn, influence sentiment toward zinc demand.