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LME zinc prices continued their strong momentum, climbing above $4,000/MT to the highest level in more than four years, supported by a weaker US dollar and improving sentiment across the base metal complex. The recent rally in industrial metals, led by copper reaching a record near $14,700/MT, has lifted investor interest across the non-ferrous segment.

The primary driver behind zinc’s strength has been the shift in global monetary expectations. Concerns over aggressive Federal Reserve rate hikes have eased, resulting in weakness in the US dollar, which improves affordability of dollar-denominated commodities for global buyers. A softer greenback has provided broad-based support to metals including zinc, copper and aluminium.

Fundamentally, zinc continues to benefit from a relatively tight supply environment. Lower treatment charges, challenges in concentrate availability and cautious smelter operations have limited the growth of refined zinc supply. At the same time, demand from the galvanising sector, particularly steel and infrastructure applications, remains a key consumption driver.

The price recovery is also supporting downstream industries. Taiwan Steel Union, a major zinc oxide producer, has reportedly already sold its entire 2026 zinc oxide production, indicating strong industrial demand. Higher international zinc prices are expected to support selling prices and improve profitability in zinc oxide and zinc waste-treatment businesses.

Zinc’s breakout above the $4,000/MT psychological mark indicates strong momentum, although elevated prices may trigger short-term profit booking. However, a weaker dollar, improving industrial demand and supply constraints keep the medium-term outlook constructive. The broader base metal cycle remains supportive as global electrification, infrastructure spending and manufacturing demand continue to expand.

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