Rising Trend in Zinc Prices on the London Metal Exchange

Zinc and copper futures prices on the London Metal Exchange continued their upward momentum, registering increases driven by short-term supply tightness and negative treatment charges.

Price Increases in Markets

Futures prices on the London Metal Exchange recorded increases of up to 1 percent. The spot metal demanding a premium over futures indicated signs of short-term supply tightness in the market.

Supply Tightness and Spreads

Zinc for prompt delivery traded at approximately $200 a ton above three-month futures, marking the widest spread recorded since December.

Ore Scarcity and Treatment Charges

Ore scarcity has pushed treatment charges applied by smelters well below zero and constricted metal supply. According to Fastmarkets data, treatment charges dropped to minus $110 per ton.

Production and Cost Evaluations

A Guangzhou Future report stated that physical liquidity on the LME is at extremely low levels, and smelting costs will form a floor for prices until mine production recovers.

State of the Copper Market

A similar trend was observed in the copper market, where short-term spreads widened, inventories remained low, and treatment charges stayed in negative territory.

US Tariffs and Shipments

While potential U.S. import tariffs remain one of the key factors influencing prices, a sudden surge in shipments to America occurred, constricting supply in other regions.

Current Trading Figures

Zinc traded at $3,916 per ton, registering a 0.6 percent increase. Copper futures rose to $14,277 per ton, showing a 0.2 percent increase.