Zinc prices slid to around $2,500 a tonne, easing from the four-month high touched on September 14th, amid globally subdued demand outlook after the hawkish rhetoric from the Fed.
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On the other hand, expectations of reduced production and positive data and stimulus measures from top buyer China supported the appetite for the metal.
The recent figures showed China took in 76,800 metric tons of zinc in July, the highest monthly tally since April 2019.
As for the supply, China’s domestic output of refined zinc this year has risen, but the market remained impacted by dwindling inventory levels and constrained time spreads.
Meanwhile, small and medium-sized zinc mines, especially those in Europe and Australia, are facing challenges in profitability, due to high operating costs and sliding prices.
Almina-Minas do Alentejo in Aljustrel was the latest zinc mine to undergo suspension until the second quarter of 2025.