According to , zinc prices found a recent decline of 0.76% and closed at a level of Rs.410.35 per kilogram. The main reason for this fall in the market is to return the work of Zinc Mines in China again to the track and the supply of concentrates in the market is better. Traders are expected that the price of the supply that has been lasted for the past few times will gradually be eliminated from the increasing incoming of raw mal
Recent of Market Fundamentals and Global Supply:
In spite of the reports of supply dismantling, zinc prices have not found a huge decline, as global reduction of refined production and operations in large smelters still remains. The technical troubles of Korea Zinc, Glencore Kazzinc and Youngpong in Socapo Smelter are scared of the Mal in the market. Furthermore, uncertainty has further enhanced the risk associated with supply in Western countries, ranging from the ongoing Budell Smelter in the Ghats of Nairstar, located in the Netherlands
Speaking of refined zinc production in China, in October 2026 it declined by 3.5% and 12% on year-on-year basis. While in total production from January to October, there was a reduction of 1.5% against the previous year, which was significantly lower than the market estimate. However, it is expected that the refined production in November can be up to 4.6% as the maintenance work has been completed in many plants, but despite this, it will remain close to 4.8% less than last year. China’s manufacturing activity is still stable and October’s ratingDog manufacturing stayed at PMI 52.0, which consistently point to 11th month growth. While the stock of zinc on the Shanghai Futures Exchange has decreased 6.3% over the last Friday, making the lack of stock in the domestic market a clean look
International Data and Future Outlook:
THE REFINED ZINC PRODUCTION OF WESTERN COUNTRIES IN THE FIRST HALF OF 2026 IS REDUCED BY 3.4% YEAR BY YEAR, DUE TO THE HIGH COST OF ENERGY AND LACK OF RAW WASTE. ACCORDING TO THE FRESH FIGURES OF THE INTERNATIONAL LED AND ZINC STUDY GROUP (ILZSG), A 3,900 TONNES OF DEFICIT (DEFICIT) WAS RECORDED IN THE GLOBAL REFINED ZINC MARKET IN AUGUST, WHILE IN JULY 27,500 TONNES WERE REPLENISHED. HOWEVER, IN THE ENTIRE PERIOD FROM JANUARY TO AUGUST STILL REMAINS A SUM OF 96,000 TONS
GIVEN THE FURTHER SCENARIO, ILZSG ESTIMATES THAT THE GLOBAL MARKET IN 2027 WILL TURN INTO A 25,000 TON OF REPLIES AFTER A POTENTIAL DEFICIT OF 88,000 TONS IN 2026. THIS WOULD BE BECAUSE REFINED PRODUCTION EXPECTS AN INCREASE OF 2% AND 3% IN THE INS PRODUCTION. WHILE GLOBAL DEMAND CAN REACH 1.2% IN 2027 TO 14.19 MILLION TONNES
Technical Levels and Open Interest:
If you look at the technical perspective, Long Unwinding is being seen in the market. The Open Interest 1.34% component has come to the 1,549 contracts, while the prices recorded a decline of Rs 3.15. Given the current levels, the first strong support on the bottom is at Rs 409.00 and the expression can slip up to Rs 407.50 if it breaks. While the first big resistance is seen at Rs 413.00 on the top, the prices can touch the level of Rs 415.50 on the exit
Conclusions for Zinc Traders:
The short-term pressure is definitely visible due to the news of growing supplies from China in zinc prices, but the uncertainty of global smelters and falling stocks are offering good support to base metals at the bottom levels. Traders should have a panic view on the important support of Rs 409; as long as this level is safe, the market can consolidate in a limited scope. It would be imperative for any new bounce to rest above Rs 413