Zinc prices fell by -0.02% to ₹270.75 due to a sharp increase in SHFE-monitored inventories since January 24. However, supply concerns limited the downside, as global mined zinc production declined for the third consecutive year in 2024.
China’s refined zinc output dropped by 7% due to lower processing rates and production cuts at major smelters. Alaska’s Red Dog Mine is expected to slow production in 2025, adding further supply constraints.
The global zinc market recorded a deficit of 52,900 metric tons in November, narrowing from 65,400 tons in October. China’s January refined zinc production increased 1% month-on-month but fell nearly 8% year-on-year.
Production in February 2025 is projected to drop over 8% MoM, with cumulative output for January-February 2025 expected to decline by approximately 6% YoY
