Zinc futures dropped toward $3,370 per tonne as investors took profits after prices surged to an over 3½-year high driven by tightening near-term supply conditions. Falling LME inventories and a narrowing Cash-3M contango signaled a firmer market structure, while lower treatment charges for zinc concentrate underscored constraints in raw material availability. Stocks at the Shanghai Futures Exchange also declined 1.8%, while concentrate inventories at ports dropped sharply, further highlighting tight feedstock.

Ongoing mine closures and operational disruptions have added to supply-side pressure, though some relief is expected from the restart of Boliden’s Tara mine and the ramp-up of Ivanhoe’s Kipushi project. Meanwhile, Peru’s zinc concentrate output showed mixed trends, falling monthly but improving from a year earlier. On the demand side, improving industrial activity in China supported sentiment, but persistent tensions in the Middle East continued to cloud the broader outlook.

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