DBT Bureau
Pune, 12 Nov 2025
Zinc prices slipped by 0.3% to settle at 303.8, pressured by weaker manufacturing activity data from both China and the U.S., which dampened overall industrial sentiment. China’s October economic indicators offered mixed signals — while deflation eased with consumer prices turning positive at 0.2% and factory-gate prices narrowing their decline to -2.1%, the official manufacturing PMI fell for the seventh consecutive month to 49.0, signaling contraction. Similarly, the U.S. PMI dropped to 50.6, below expectations, suggesting a slowdown in industrial activity. However, some support came from optimism around the U.S. Senate’s progress toward ending the prolonged government shutdown, which helped stabilize market sentiment. On the supply front, zinc inventories continue to tighten globally. LME stocks dropped to 35,200 tons — their lowest since March 2023 — down about 85% from the start of the year, underscoring strong physical market demand and a looming supply squeeze. The cash-to-three-month LME premium widened to $170, highlighting immediate metal shortages. Meanwhile, global refined zinc output is projected to rise 2.7% to 13.8 million tons in 2025, while the ILZSG reported a global surplus of 47,900 tons in August and 154,000 tons for January–August 2025, slightly above last year’s level. Zinc is witnessing long liquidation, with open interest falling 3.95% to 2,696. Support is placed at 302.6 and 301.2, while resistance is expected at 305.1 and 306.2.
Market Analysis:
- Zinc trading range for the day is 301.2-306.2.
- Zinc eased as soft manufacturing PMIs in China and the US pressed against industrial sentiment.
- October data from China signalled easing deflation and lifted confidence in economic recovery
- Commerzbank revises forecast for zinc to $3,000 per ton (previously $2,800)
