# Zinc Prices Hold Rebound Above $3,700 per Ton on Tight Global Supply

- URL: https://stocks.freetheai.org/news/zinc-prices-hold-rebound-above-3-700-per-ton-on-tight-global-supply-34de1a
- Published: 2026-10-20T02:27:26Z
- Category: commodities; sentiment: bullish; impact: medium
- Symbols: [COMEX:ZNC1!](https://stocks.freetheai.org/symbols/COMEX-ZNC1!)
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Zinc futures maintained their recovery above $3,700 per ton after rising from a two-month low of $3,664.9 per ton recorded on October 16. The market stability comes as persistent supply shortages support metal prices across global markets.

Production constraints are particularly clear in Western economies, where first-half 2026 output dropped 3.4% year-over-year due to elevated energy expenses and scarce raw materials. Smelting operations in Asia are also contracting, with Chinese refined zinc output shrinking 1.9% from the prior month and 6.4% from a year earlier in September. Additionally, inventories tracked by the Shanghai Futures Exchange fell 1.5% week-over-week, further constraining available supply.

Market participants are monitoring Nyrstar as the company conducts a strategic review of its unprofitable Budel smelter located in the Netherlands. Any operational adjustments resulting from this review could create additional headwinds for European zinc production and tighten global availability further.

## Key points

- Zinc futures held above $3,700 per ton, rebounding from an October 16 low of $3,664.9 per ton.
- Western zinc output dropped 3.4% year-over-year in the first half of 2026 due to high energy costs.
- China refined zinc production declined 1.9% month-over-month and 6.4% year-over-year in September.
- Shanghai Futures Exchange zinc inventories decreased by 1.5% from the previous week.
- Nyrstar is conducting a strategic review of its unprofitable Budel smelter in the Netherlands.

## Questions and answers

### Why are zinc prices holding above $3,700 per ton?

Zinc prices are supported by ongoing supply shortages in Western markets and lower refined output in China, along with declining exchange inventories.

### How much did Western zinc production drop in early 2026?

Western zinc output fell 3.4% year-over-year during the first half of 2026, driven by high energy expenses and limited raw material availability.

### What factor could impact European zinc supply next?

Nyrstar is reviewing its loss-making Budel smelter in the Netherlands, and potential operational changes at the plant pose a threat to regional supply.