Zinc price jumps to 4-year high as LME stocks plunge 64%
LME zinc price hikes as western warehouses drains, supply tightens.
Zinc surged to its highest price since June 2022 on the London Metal Exchange (LME) on Thursday, driven by sharply declining warehouse stocks and reduced mine supply, according to wire reports. The LME zinc for cash settlement hit $4,107 a tonne ($1.86 a pound) on August 27, marking a 55% increase from a low of about $2,650 mid-2025.
Warehouse stock plummeted from 264,000 tonnes in December 2024 to around 95,000 tonnes, a 64% decrease that has left available metal at its lowest since April 2023. Fastmarkets reported these warehouse stock declines. The concurrent drop in inventory and price indicates physical tightness in the market, as rising cash settlement prices coincide with shrinking warehouse stocks due to reduced buyer options.
This tightness is primarily concentrated in Western warehouses, while Shanghai Futures Exchange zinc inventory has risen over the same period, Reuters added. HSBC’s Global Commodity Team predicts a 2.1% year-on-year decline in 2026 to 12.5 million tonnes, citing lower production in Latin America. JP Morgan expects zinc prices to remain high through 2026 as supply tightens globally and demand grows, as per Investing.com.
Major zinc producers linked to the LME price include Teck Resources (TSX: TECK; NYSE: TECK), which saw a 47% share increase, Glencore (LSE: GLEN) with a 46% rise, and Nexa Resources (TSX: NEXA), up 60% since January 2026.
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