
Zinc futures hovered below $3,600 per tonne but remained near a four-year high, supported by easing geopolitical tensions and tight near-term supply conditions. The US and Iran remotely signed a memorandum of understanding to end their war, alleviating fears about global economic growth and improving the outlook for industrial demand. At the same time, recent disruptions across major producers have reinforced supply concerns. Glencore’s Kazzinc facility in Kazakhstan is running at reduced capacity after an explosion, while Nexa’s Cajamarquilla smelter in Peru was temporarily suspended due to fire damage, though production is gradually resuming. Goldman Sachs also noted that Boliden’s Garpenberg mine in Sweden could operate at structurally lower output levels for longer after a seismic activity earlier this year. Meanwhile, the US dollar strengthened amid increased bets on a Federal Reserve rate hike, pressuring dollar-priced commodities.
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