Zinc prices experienced a slight decline, closing down by 0.44% at Rs 307.65, as profit-taking occurred following a recent surge fueled by speculative purchasing amid worries about tightening supply. The correction occurred notwithstanding new signs of supply-side limitations in China, where a central zinc mine is poised for routine maintenance, leading to a decrease in production days. Concurrently, another mine in southwest China has largely fulfilled its annual production target and is also slated for maintenance, which could diminish zinc concentrate output by approximately 700 tonnes in metal content.

Zinc concentrate production is anticipated to decrease on a month-on-month basis. Nonetheless, the upward momentum continued to be constrained by lackluster downstream indicators emanating from China. Property investment and property sales by floor area have continued to decline, raising concerns about demand.

Furthermore, China’s refined zinc output experienced a significant increase, with November production rising by 13.3% year-on-year to 654,000 tonnes, highlighting a robust smelter supply in the face of disruptions at the mine level. Globally, refined zinc metal production is anticipated to increase by 2.7%, reaching 13.8 million tonnes by 2025. Data indicated that the global zinc market deficit decreased to 600 tonnes in October, whereas the first ten months of 2025 experienced a surplus of 76,000 tonnes, in contrast to a slight surplus recorded in the previous year.

From a technical perspective, the market is experiencing long liquidation, evidenced by a 1.27% decrease in open interest to 5,204, accompanied by a price decline of Rs 1.35. Support is established at Rs 305.9, beneath which prices could potentially approach Rs 303.9. Resistance is identified at Rs 309.3, and a breach above this level may result in a retest of Rs 310.7.