Zinc prices rose by 1.38% to ₹286.7, driven by a drop in inventories at warehouses monitored by the Shanghai Futures Exchange. Tightening zinc supply provides a bullish outlook. Although zinc concentrate inventory at ports has increased, reduced smelter output in Q3 has constrained the market.
Smelter production in Q4 remains historically low, around 500,000 metric tons. Trafigura Group’s withdrawal of significant zinc volumes from London Metal Exchange warehouses has reduced LME inventory availability, fueling supply concerns and boosting prices.
The global zinc market deficit narrowed slightly to 79,500 metric tons in September, with a cumulative deficit of 8,000 tons from January to September 2024. China’s refined zinc production rose over 2% month-on-month in September, but raw material shortages remain a challenge.
