Zinc prices fell by 0.34% to 288.95 due to rising stocks in LME warehouses, easing supply concerns. This has led to a reduced cash premium over three-month zinc contracts, indicating softer demand.
Chinese economic data shows sluggish demand, with September’s industrial profits marking the steepest decline of the year. Production forecasts for global mined zinc in 2025 face uncertainty as Russia’s Ozernoye faces production challenges due to equipment procurement sanctions.
The global zinc market deficit rose to 66,300 metric tons in August, with a surplus of 127,000 tons recorded in the first eight months of 2024.
China’s refined zinc production in September rose by over 2% month-over-month but fell by 8% year-over-year, exceeding forecasts. A continued increase in domestic refined zinc output is anticipated in October, with production upticks in Inner Mongolia, Shaanxi, and Hunan.