25.06.202603:15:33UTC+00Zinc Hits 7-Week Low

Zinc futures declined to about $3,410 per tonne, the lowest level in seven weeks, weighed down by a strengthening US dollar. Expectations of higher US interest rates have bolstered the greenback, making dollar-denominated commodities less attractive to buyers using other currencies. The downside in prices was partly contained by progress in US–Iran talks, which eased fears of further disruptions to global activity and helped improve the outlook for industrial demand.

At the same time, zinc prices continued to find support from tightening supply conditions following a series of disruptions at major facilities. Glencore’s Kazzinc operation in Kazakhstan is still running at reduced rates after an explosion, while Nexa’s Cajamarquilla smelter in Peru is in the process of recovering from fire-related damage. In addition, a seismic event earlier this year at Boliden’s Garpenberg mine has fueled concerns about a prolonged period of lower production. These supply constraints come as the International Lead and Zinc Study Group projects a refined zinc market deficit of 19,000 tonnes for this year.