Zinc Falls as the Fed Hike Hits Latin American Mining Shares
Zinc proxies slid on Wednesday, September 16, 2026, after the Federal Reserve's hawkish rate rise. Nexa Resources dropped 4.28% as the dollar firmed. The post Zinc Falls as the Fed Hike Hits Latin American Mining Shares appeared first on The Rio Times .
Zinc prices fell on September 16, 2026, after the Federal Reserve's hawkish rate hike. The US dollar strengthened, making dollar-priced metals more expensive for foreign buyers. Nexa Resources, a Brazil and Peru-based zinc producer, saw its shares drop 4.28% to $12.08, while Peruvian miner Buenaventura fell 0.51% to $33.07. The Fed's decision to raise rates further dampened the outlook for rate-sensitive construction and infrastructure demand that drives zinc consumption.
Zinc is primarily used for galvanising steel, making it directly tied to global building, automotive, and appliance cycles. The Federal Reserve's decision strengthened the dollar, which put pressure on zinc-exposed Latin American mining shares. Nexa Resources bore the brunt of the sell-off, dropping 4.28% to $12.08, while Buenaventura fell slightly less, at 0.51%.
The difference reflects Nexa's heavier direct exposure to zinc and industrial demand, while Buenaventura's gold and silver streams provided a buffer. The market's reaction to the Fed's hawkish stance was more driven by the dollar's strength than zinc's own fundamentals, as 16 of 18 policymakers signaled another rate hike in 2026.
Investors should monitor the dollar's follow-through after the Fed's move, as further strength could continue to pressure Latin American mining shares.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
