Zinc prices continued their upward trajectory, closing with an increase of 2.59% at Rs 312.95. This rise was bolstered by limited year-end trading activity, speculative purchasing, and a depreciating US dollar, all amidst apprehensions regarding tightening supply conditions. Planned maintenance shutdowns at zinc mines in Central and Southwest China are anticipated to provide additional support by diminishing the availability of zinc concentrate. This includes an estimated reduction of 700 tonnes in metal content due to maintenance activities scheduled for December.

Zinc inventories tracked by the Shanghai Futures Exchange experienced a decline of 5.7% week-on-week, underscoring a tightening of supply in the near term, while levels of inventories outside of China continue to be markedly low. Nonetheless, the upward momentum faced limitations due to lackluster macroeconomic indicators emerging from China. Property investment and sales measured by floor area continued to decline, while factory output and retail sales growth experienced further deceleration in November, indicative of weak domestic demand.

On the supply side, China’s zinc output experienced a significant increase, rising 13.3% year-on-year to 654,000 tonnes in November, thereby exerting upward pressure on prices. Globally, refined zinc metal production is anticipated to increase by 2.7%, reaching 13.8 million tonnes in 2025. The International Lead and Zinc Study Group indicated that the global zinc market deficit decreased to 600 tonnes in October, whereas the initial ten months of 2025 revealed a refined zinc surplus of 76,000 tonnes.

From a technical perspective, the market is experiencing new buying activity, as evidenced by a 14.24% increase in open interest to 5,015, coupled with a price rise of Rs 7.9. Zinc exhibits a support level at Rs 307.7; a breach of this threshold may lead to a decline towards Rs 302.4. Resistance is identified at Rs 315.8, and a sustained advance beyond this level may pave the way toward Rs 318.6.