11.02.202616:39:57UTC+00Zinc Approaches 3-Year High

Zinc futures in the UK climbed to $3,400 per tonne, approaching the three-year high of $3,430 reached in late January, amid persistent concerns over tight supply. According to the latest data, refined zinc production was set to decline by 2% last year, even as mined output increased by 6.3%. This divergence reflects production cuts at smelters in Kazakhstan and Japan, with the latter particularly affected by the closure of Toho Zinc’s key Annaka plant.

At the same time, zinc treatment charges rose toward $105 per thousand tonnes, down sharply from $230.5 per thousand tonnes at the start of last year, following the near depletion of both on-warrant and off-warrant inventories at the beginning of the fourth quarter.

More broadly, base metals found support on expectations that the ongoing electrification drive and sustained investment in data centers will underpin demand for industrial raw materials, helping to offset the drag from weaker global growth.