Zinc prices experienced a slight increase of 0.45%, closing at Rs 302.75. This uptick is attributed to emerging supply-side constraints, particularly following the announcement of a routine maintenance shutdown at a zinc mine in Central China, which has led to a reduction in available production days. Further backing was provided by anticipations of reduced zinc concentrate production, as a mine located in Southwest China has predominantly achieved its yearly output goal and is slated for maintenance in December, which is projected to decrease concentrate production by approximately 700 tonnes in metal content.

Inventories in warehouses monitored by the Shanghai Futures Exchange decreased by 5.7% compared to the previous week, indicating a contraction in near-term supply availability. Nonetheless, the potential for gains was constrained by lackluster macroeconomic indicators emanating from China. Property investment and sales by floor area continued to decline, while factory output and retail sales growth further decelerated in November, highlighting weak domestic demand.

On the supply side, China’s refined zinc production experienced a significant increase, rising 13.3% year-on-year to 654,000 tonnes in November, thereby intensifying the pressure on prices. Globally, refined zinc production is projected to increase by 2.7%, reaching 13.8 million tonnes by 2025. The International Lead and Zinc Study Group reported a modest global market deficit of 600 tonnes in October, while the refined market continued to exhibit a surplus of 76,000 tonnes over the initial ten months of 2025.

From a technical perspective, the market is experiencing short covering, as open interest has decreased by 11.92% to 1,870 while prices have increased by Rs 1.35. Zinc is currently supported at Rs 301.6, and a breach below this level would reveal Rs 300.4 as the next point of interest. Resistance is established at Rs 303.9, and a breach above this level may lead to a test of Rs 305.