London Metal Exchange (LME) zinc futures soared nearly 3% last week, closing at US$2,972.5 per ton, driven by news that Nyrstar, one of the world’s largest zinc smelters, will cut production by 25%. 

According to market analysts, with China’s peak demand season approaching, zinc prices are expected to remain strong and could soon break the US$3,000 mark. 

Nyrstar announced that starting April 2025, its Hobart zinc smelter in Australia, with an annual capacity of 260,000 tons, will reduce output due to deteriorating raw material markets, high processing fees, and rising costs. Additionally, LME-monitored zinc inventories fell by 825 tons on March 14, dropping to 159,500 tons. 

While rising prices may curb downstream purchasing, analysts note that Nyrstar’s supply reduction, coupled with China’s peak season in March and April, could push zinc prices past the US$3,000 threshold in the near term.