Zinc Prices Lifted by Strong Demand, Tight Supply

Zinc prices firmed across global exchanges, supported by falling LME inventories and stronger Chinese demand. While ILZSG projects a surplus of ~93,000 t in 2025, short-term sentiment remains bullish. Russian mine delays and tight concentrate supply may cushion against downside, keeping MCX zinc in upward momentum near-term.

Key Highlights

  • LME Zinc (3M) rose 0.60% to $2,852.75/mt.
  • LME stocks fell to 55,875 t, signaling tightening supply.
  • SHFE zinc gained on stronger Chinese demand recovery.
  • MCX outlook bullish with ₹274 support and ₹278–280 resistance.
  • LME Zinc (3M Futures): US $2,852.75/mt (+0.60%).
    Range: Open $2,768.39 / High $2,794.50 / Low $2,766.75
  • LME Cash Price: $2,840.00/mt
  • SHFE (China, Sept Contracts): ¥22,280–22,325/mt (+0.56–0.59%)
  • MCX (India): ₹275.85/kg (+0.66%), supported by strong spot demand

Supply Outlook: Falling stocks, ILZSG surplus forecast

  • LME Inventory: 55,875 t (↓ from previous day), signaling tighter availability.
  • ILZSG 2025 Outlook:
    1. Market expected to post a ~93,000 t surplus
    2. Mine output +4.3% (~12.43 Mt)
    3. Refined output +1.8% (~13.73 Mt)
    4. Demand growth +1%

Market Drivers: China demand and mine delays support prices

  1. Global rally in zinc prices amid falling inventories.
  2. Chinese demand recovery lifts SHFE futures. 
  3. Russian Ozernoye mine delays could restrict concentrate supply, partly offsetting surplus concerns.

Technical View (MCX Zinc)

  • Support: ₹274.0/kg
  • Resistance: ₹278.0/kg 
  • Breakout Zone: Above ₹280.0/kg

Expert View: Bullish momentum with ₹274–280 trading range

MCX zinc at ₹275.85/kg reflects a bullish momentum. Prices may extend gains if inventory drawdowns continue or if Chinese demand strengthens further, despite the broader surplus forecast for 2025.

Zinc Ingots
ved bot