Zinc settled higher by 1.16% at 260.8, driven by a softer dollar and supply tightness overseas. However, concerns about global demand growth and new U.S. tariffs have stoked uncertainty across metals markets.
The Biden administration’s tariff notices, targeting 14 countries with rates ranging from 25% to 40%, effective August 1, have stoked uncertainty. U.S. President’s extra 10% duty on BRICS nations has raised fears of broader trade friction.
Fundamentals remain mixed, with Shanghai Futures Exchange zinc inventories rising by 4% last week. China’s factory activity shows contraction, while higher consumer spending offers some hope for a demand rebound later this year.
