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Zinc hits 4-year high as LME warehouse stocks plunge 64%
LME cash settlement zinc rose to $4,107 a tonne on Aug. 27, while LME warehouse inventories fell to about 95,000 tonnes, the lowest since April 2023.
Zinc prices surged to the highest level since June 2022 on the London Metal Exchange as warehouse stockpiles drained to multi year lows and mine supply cuts tightened the physical market, Mining.com reported.
LME zinc for cash settlement closed at $4,107 a tonne, or $1.86 a pound, on Aug. 27, up 55% from a mid 2025 trough of about $2,650. Over the same period, LME warehouse stock dropped from about 264,000 tonnes in December 2024 to roughly 95,000 tonnes, a 64% drawdown that left available metal at the lowest level since April 2023, Fastmarkets reported.
Mining.com said the price rise alongside falling inventories signals physical tightness, with the drawdown concentrated in Western warehouses. It also noted that Shanghai Futures Exchange zinc inventory has risen while LME stock has declined, according to Reuters.
Looking ahead, Mining.com cited forecasts from HSBC and JPMorgan that point to continued supply tightness, including a 2026 year on year production decline estimate for Latin America. The story also linked the LME price move to share gains for major producers exposed to the LME market, including Teck Resources, Glencore, and Nexa Resources.