Zinc Prices Stabilize at $3,000 per Ton

Zinc prices are hovering around $3,000 per ton for three-month futures.

On the 16th, the spot price of zinc traded on the London Metal Exchange (LME) fell by $18 to $2,936 per ton, and the three-month futures price decreased by $16 to $2,984 per ton. The previous day, the three-month futures price had reached $3,000 but adjusted downward the following day. Despite the price drop, it remains significantly higher than the 15-day and 30-day moving averages in the $2,800 range.

India's infrastructure output increased by 5.2% year-on-year in March, and steel production rose by 5.5%, highlighting a notable increase in global demand for zinc. In contrast, China's steel inventory remains excessively high, necessitating reductions. This situation is negatively impacting zinc demand as crude steel production declines.

However, with the recent rise in zinc prices, Nyrstar and Boliden have decided to resume operations at their European smelters, which will likely increase zinc supply. Nevertheless, concerns about supply disruptions in zinc concentrate persist, suggesting that the imbalance between concentrate supply and refined metal demand will continue.