Zinc prices fell 0.84% to 258.6. This was due to the resurgence of tensions over US tariffs in a difficult global economic situation. The US President has decided to impose new import tariffs of 25% to 40% on 14 countries from August 1. He has also warned of imposing an additional 10% tax on BRICS countries.
On the supply side, the global zinc sales surplus is gradually decreasing. According to the International Lead and Zinc Study Group, the volume of zinc sales decreased from 23,400 metric tons in March to 16,000 tons in April.
For example, the world’s largest zinc mine, Red Dog Mine in Alaska, produced 20% less in the first quarter of this year compared to last year. Also, Australian company Nyrstar plans to reduce its production by 25% due to a shortage of ore and high costs.
Meanwhile, China’s industrial demand remains weak. Zinc inventories rose 10.2% from the previous week, according to the Shanghai Futures Exchange (SHFE), which tracks zinc. This suggests that buyers are currently only buying as much as they need.
