Zinc Retreats From Four-Year High as LME Spreads Signal Tighter Supply
AI Market Summary
Zinc eased from a four-year high, but LME spreads signal persistent near-term tightness: the cash-to-3M premium neared $200/ton and Tom-next backwardation rose to about $13/ton. Deeply negative treatment charges (down to -$110/ton) highlight ore scarcity and raise the risk of smelter output cuts, supporting physical tightness even as broader metals weaken alongside softer European equities.
Impact level
● Medium
Affected assets
NCCOZINC2USD/USDT+0.88%
AI Insight · NCCOZINC2USD/USDTAI Insight
● Neutral
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Zinc prices pulled back from a four-year high, even as London Metal Exchange spreads pointed to tighter near-term supply. The cash-to-three-month premium on the LME at one point neared $200 a ton, the widest since December, while the Tom-next spread rose to about $13 a ton, the highest since March. Treatment charges paid by miners to smelters have fallen to as low as minus $110 a ton, highlighting constraints in ore supply.
