UK Zinc Futures Rise to $3,220 Amid Supply Concerns and Production Declines
UK zinc futures surged to $3,220 per tonne amid concerns over declining refined zinc production, projected to drop by 2% due to smelter restrictions in Kazakhstan and Japan. Despite a 6.3% increase in mined output, dwindling LME stocks and rising treatment charges have contributed to the upward price trend. Strong demand for base metals is anticipated due to increased electrification and data center investments.
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Zinc futures in the UK reached $3,220 per tonne, close to the three-year high of $3,250 from January 6th. A 6.3% rise in mined zinc output was reported, but refined zinc production is projected to decline by 2% due to smelter restrictions in Kazakhstan and Japan, including the closure of the Toho Zinc Annaka plant.
Treatment charges for zinc neared $100 per ton, up from negative $115 at the previous year's end. LME stocks fell to 100 thousand tonnes from 230.5 thousand tonnes at the start of last year, following the depletion of both on-and off-warrant stocks. Demand for base metals is expected to remain strong due to increased electrification and data center investments.
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