London Metal Exchange (LME) zinc stocks have doubled in the last month to a level not seen since February 2022, with a flood of 76,425 metric tons added just this August.
Surplus Zinc Piles Up, Impacting Market Dynamics
After hitting a three-year low of $2,215 per metric ton in May. LME three-month zinc (zinc stocks) prices have fallen 24% since January.
The recent influx of zinc onto the market is in response to weaker market dynamics, contributing to the metal’s decline.
The sudden appearance of excess zinc is not unexpected, considering the metal’s downward trend. Zinc’s poor performance has prompted a wave of selling in global markets, driven by concerns about China’s economy and extended U.S. interest rate hikes.