By Zinc prices on the London Metal Exchange have turned volatile this week amid an acute shortage of available stocks. Inventories in LME-registered warehouses have dropped to critically low levels — estimated to be less than a single day’s worth of global consumption.
The sharp decline has triggered a strong upward push on prices and widened time spreads, indicating growing stress in the physical market. The sudden squeeze comes as a surprise to many traders, given earlier expectations of surplus supply in the zinc sector.
Market analysts note that the current conditions could lift short-term zinc prices but may also create supply disruptions and liquidity challenges for traders and smelters. The coming weeks are likely to test how resilient the zinc supply chain remains under tightening fundamentals.
Zinc Market Tightens as LME Inventories Fall to Record Lows
