23.09.202603:47:56UTC+00Zinc Declines

Zinc prices retreated to about $3,880 per ton as a stronger US dollar pressured the market. Hawkish commentary from the Federal Reserve bolstered the greenback, increasing the cost of dollar‑denominated commodities for international buyers.

The decline in prices was tempered by tightening supply and reduced output in China. Chinese zinc production fell 1.8% year-on-year in August, its first annual drop in nearly a year and the lowest level since May 2025, reflecting smelter maintenance, mining disruptions, and negative spot treatment charges.

Output has also decreased at several major mines, including Antamina in Peru and Red Dog in Alaska, as operators process lower-grade sections of their ore bodies. At the same time, LME inventories remain historically low, with physical tightness particularly pronounced in Western markets.

In addition, an industrial accident was reported last week at Korea Zinc’s Onsan smelter. However, the company has not announced any production cuts, maintenance shutdowns, or suspensions of operations.