FX.co ★ Zinc Futures Hit Near 2-Month Low

Zinc futures declined to about $3,200 in mid-March, their lowest level since January 21, as rising inventories on the Shanghai Futures Exchange (SHFE) and in LME warehouses, combined with a firm US dollar, pressured market sentiment. SHFE zinc stocks climbed 9.2% over the week, while the delivery of more than 21,000 tonnes into Singapore lifted LME inventories to their highest level since July.

Additional downward pressure came from the strong US dollar, supported by safe-haven demand amid escalating tensions in the Middle East. Even so, the decline in zinc prices was contained by persistent concerns over tight global supply and historically low inventories in some regions.

Zinc prices also found support from signs of industrial recovery in China, where output rose 6.3% year-on-year in the first two months of 2026 and fixed-asset investment registered a modest improvement.

On the supply side, Boliden’s Tara mine in Ireland has resumed operations following its 2023 shutdown, while Ivanhoe Mines’ Kipushi project in the Democratic Republic of Congo is in the process of ramping up production.