Zinc prices rose 0.37% in yesterday’s trading session, closing at 257.8, driven by concerns about supply disruptions and optimism about China’s economic recovery.
According to the International Lead or Zinc Study Group. There was a growing surplus in the global zinc market in February, with 40,100 metric tonnes recorded, up from 12,300 tonnes in January (ILZSG).

Because a number of factors affected supply dynamics, the market sentiment continued positive despite this surplus.

The Budel smelting facility in the Netherlands, with a production capacity of 315,000 metric tons per year and owned by Nyrstar, is scheduled to start up again during the week of May 13.

This development highlights the demand for zinc and shows that the smelter is responding to market conditions. Even though it will restart at lowered capacity.

The output of refined zinc increased to 525,500 metric tonnes in March. A month-over-month growth of 4.57%, in China, the world’s biggest consumer of zinc. With a total output of 1.595 million metric tonnes from January to March. It exceeded forecasts and showed a 1.63% year-over-year increase.

In addition, a Chinese private survey found that factory activity increased in March at the fastest rate in more than a year. Which was consistent with official data and indicated that the industrial sector was strengthening.

Technically, there was new buying momentum in the zinc market, as prices increased by 0.95 rupees. And open interest increased by 4.4% to settle at 4,053 contracts.

Zinc currently finds support at 255.6, and if the support is broken, there could be a test at 253.3 levels. Resistance on the upside is expected to be at 259.4, and if prices break above it, they may test 260.9.

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