30.01.202610:59:09UTC+00Zinc Falls from 3-Year High

Zinc futures in the United Kingdom have decreased to $3,300 per tonne, down from a three-year peak of $3,430. This decline aligns with a broader reduction in base metal prices, driven by the resurgence of the dollar, prompting investors to reassess their speculative metal positions. Nonetheless, global refining capacity challenges continue to exert pressure on zinc supply. Refined zinc production was anticipated to decrease by 2% last year, according to the latest figures, despite a 6.3% increase in mining output. This situation mirrors production restrictions faced by smelters in Kazakhstan and Japan, with Japan's challenges exacerbated by the shutdown of the critical Toho Zinc Annaka facility. In a similar vein, zinc treatment charges climbed to approximately $100 per tonne, a significant shift from the negative $115 recorded at the close of the previous year, as revealed by private research. As a result, stockpiles at the London Metal Exchange (LME) dropped to 110,000 tonnes from 230,500 tonnes at the outset of last year, following near exhaustion at the beginning of the fourth quarter. The base metals sector further benefited from increased electrification and data center investment initiatives.