Zinc hits two-week high as tight stocks spur bullish sentiment
XLB•Zinc rose 1.5% to $3,800.50 a ton after reaching a two-week high of $3,821.50, as falling inventories and higher power prices supported sentiment. The refined zinc market shifted to a 3,900-ton deficit in August from a 27,500-ton surplus in July.
1. Zinc reaches two-week high
Benchmark three-month zinc on the London Metal Exchange rose 1.5% to $3,800.50 a metric ton by 1030 GMT on Monday, after reaching $3,821.50, its highest since October 12. Citi described sentiment as neutral to modestly bullish, while noting that some market participants think expectations for mine-supply growth in 2027 may be too optimistic.
2. Inventories and supply tighten
The global refined zinc market recorded a 3,900-ton deficit in August, compared with a 27,500-ton surplus in July, data from the International Lead and Zinc Study Group showed. Shanghai Futures Exchange zinc stocks fell 5% week over week to 137,139 tons, their lowest since March, while available LME inventories stood at 133,700 tons. The LME cash contract traded at about an $80-a-ton premium to the three-month forward contract; one entity held 30% to 40% of LME zinc warrants and cash contracts.
3. Other metals move unevenly
Copper edged up 0.1% to $14,328.50 a ton, while aluminium dipped 0.1%, lead gained 0.6%, nickel fell 0.5% and tin rose 1.1%. The Yangshan copper premium reached $168 a ton, its highest since 2014, after Shanghai copper stocks fell more than 25% to 54,356 tons.
