LME zinc surges to nearly four-year highs on fresh smelter disruptions

• Peru, Kazakhstan outages deepen refined zinc supply concerns
  
  
• LME inventories remain critically low amid tightening outlook
  
  

Global zinc prices rallied sharply on 14 May 2026, climbing to their highest level since August 2022 after fresh disruptions at major smelters in Peru and Kazakhstan intensified concerns over tightening refined zinc supply.

Benchmark three-month zinc on the London Metal Exchange (LME) rose 2.3% to $3,610/t, after touching an intraday high of $3,616.5/t. The rally followed Nexa Resources' decision to temporarily suspend operations at its 344,400 t/y Cajamarquilla zinc smelter in Peru after a fire damaged key infrastructure at the site. The facility is the largest zinc smelter in Latin America.

The disruption came shortly after Glencore-owned Kazzinc reported reduced operating rates at its zinc and lead plants in eastern Kazakhstan following an explosion last week, further tightening market sentiment.

The refined zinc market was already projected to remain in deficit before the latest outages. According to the International Lead and Zinc Study Group (ILZSG), the global refined zinc market is expected to record a deficit of around 19,000 t in 2026.

Meanwhile, LME zinc inventories stood at 110,875 t, equivalent to less than three days of global consumption, highlighting the fragile supply environment. However, the cash zinc contract continued to trade at a discount of around $19/t to the three-month contract, indicating that immediate physical tightness has yet to emerge fully.

Market participants expect zinc prices to remain firm in the near term amid ongoing supply-side uncertainties and low visible inventories.