Zinc Market Faces Volatility Amid Supply Concerns

Reported 2 days ago

Zinc prices may experience increased volatility due to tightening supply chains, with a recent surge following significant withdrawals from London Metal Exchange warehouses. The price rose nearly 5% despite a prior decline, amid speculation of potential shortages affecting short-position holders. Analysts anticipate that supply constraints will continue into 2025, and any production cuts could lead to further price spikes. The zinc market is also seeing similar competitive pressures as copper, with Chinese smelters struggling for raw materials amidst negotiations for annual processing fees. Overall, zinc has outperformed other metals this year with a gain exceeding 15% amid various global market dynamics.

Source: YAHOO

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