Zinc prices experienced a modest increase, closing up 1.18% at Rs 312.7. This uptick was bolstered by positive sentiment regarding stable demand from China, coupled with diminishing inventories and persistent disruptions on the supply side. Sentiment was bolstered by reports of planned maintenance shutdowns at multiple Chinese zinc mines, anticipated to diminish concentrate availability in the short term.

A mine in southwest China, having largely fulfilled its annual production target, is poised for maintenance that may reduce zinc concentrate output by approximately 700 tonnes of metal content. Meanwhile, a mine in central China will experience a decrease in operating days due to scheduled shutdowns. Nonetheless, the potential for price increases was constrained by ongoing apprehensions regarding the overall economic perspective of China. Despite an unexpected expansion in factory activity in China during December, ongoing weakness in property investment and sales persisted, exerting pressure on demand expectations.

On the supply side, China’s zinc output increased significantly by 13.3% year-on-year to 654,000 tonnes in November, bolstering expectations that the market may transition to a surplus by 2026. In the first ten months of 2025, the global refined zinc market experienced a surplus of 76,000 tonnes, as reported, despite a contraction in the monthly deficit observed in October.

From a technical perspective, the market is experiencing short covering, as evidenced by a 5.56% decline in open interest alongside a price increase of Rs 3.65. Zinc exhibits support at Rs 310.1; a decline beneath this level may lead prices to approach Rs 307.5. Resistance is identified at Rs 314.5, and a breach of this threshold could pave the way toward Rs 316.3.