Zinc Prices Hit Four-Year High, Spot Premium Widens to Yearly Maximum as Market Supply-Demand Tensions Intensify

HSBC notes that, driven mainly by production cuts in Latin America, global zinc mine output in 2026 is set to decline by 2.1% year-on-year to 12.5 million tonnes, alongside smelting disruptions; with a moderate demand recovery in Europe and North America, market supply and demand are poised to tighten. On Thursday, the premium of LME cash zinc over three-month zinc reached as high as $132 per tonne, indicating intensifying competition for readily available metal in the market.