FX.co ★ Zinc Hovers Near 4-Year High

Zinc futures were trading around $3,600 per tonne, near their highest level in four years, as sentiment improved following progress in US–Iran negotiations. The first round of talks in Switzerland ended with both sides agreeing on a roadmap toward a final deal, easing worries about further disruptions to global economic activity and bolstering expectations for industrial demand. Additional support came from tightening near-term supply after production setbacks at key facilities. Glencore’s Kazzinc operation in Kazakhstan is running at reduced capacity following an explosion, while Nexa’s Cajamarquilla smelter in Peru was temporarily shut down because of fire damage, though output is gradually being restored. Earlier in the year, a seismic event at Boliden’s Garpenberg mine also raised concerns about the risk of prolonged lower production. These bullish factors are being partially offset by the strength of the US dollar, which makes dollar-denominated commodities more expensive for buyers using other currencies and is therefore weighing on zinc prices.