International zinc prices fluctuated near four-year highs, trading around US$3,585 per ton on the London Metal Exchange (LME) on July 23. Rising by approximately 14% this year and 50% over three years, high zinc costs increased financial pressure on Taiwan’s pickling and mechanical galvanizing processors, who passed price hikes to downstream fastener manufacturers.

Geopolitical tensions exacerbated supply chain risks as the closure of the Strait of Hormuz halted maritime transit, threatening raw material shipments to Asian importers.

Southern Taiwanese fastener lubricant suppliers face volatile pricing and unstable sourcing. Bound by long-term fixed contracts, local screw makers remain unable to pass increased processing costs to overseas customers, forcing businesses to absorb narrow margins.