Zinc prices concluded the session on an upward trajectory, increasing by 0.79% to reach Rs 323.85. This rise was primarily driven by constrained supply dynamics and persistent apprehensions regarding mine disruptions and delays. Despite a 7.04% increase in inventories within warehouses tracked by the Shanghai Futures Exchange since last Friday, persistent concerns regarding overall supply have continued to support the market. Geopolitical tensions have contributed to a climate of caution among traders.

The current U.S.-Israeli initiative targeting Iran has now reached its sixth day, contributing to increased uncertainty in global markets and bolstering the strength of the U.S. dollar. A robust dollar generally exerts downward pressure on base metals, while increasing risk aversion has induced volatility throughout commodity markets. In China, authorities have established a 2026 economic growth target of 4.5%–5%, which is marginally lower than last year’s 5% expansion, indicating a more cautious growth perspective.

The People’s Bank of China signaled that it might employ measures like the reserve requirement ratio and interest rate reductions to bolster the economy if necessary. Supply dynamics continue to be a critical element. The global zinc market experienced a shortfall of 33,000 tons in 2025, as reported by the International Lead and Zinc Study Group; however, an increase in mine supply may lead to a modest surplus in the current year.

The market is currently experiencing new buying activity, as evidenced by a 1.11% increase in open interest to 4,025, alongside a price increase of Rs 2.55. Zinc exhibits immediate support at Rs 321.5, with a breach below this level likely to test Rs 319. On the upside, resistance is identified at Rs 326.1, and a movement above this threshold could propel prices toward Rs 328.2.