Zinc prices experienced a decline of 2.36%, settling at Rs 306.6, reflecting a broader weakness in industrial metals driven by escalating concerns regarding the global economic ramifications of the Iran conflict. Sentiment continued to face challenges as a result of a robust US dollar and a consistent accumulation of inventories. Stocks on the Shanghai Futures Exchange experienced a notable increase of 9.2% over the week, while substantial inflows into London Metal Exchange warehouses have resulted in global inventories reaching their highest levels in several months, indicating a robust near-term supply situation.

In China, the recovery of consumption has lagged behind expectations, despite a year-on-year increase of 6.3% in industrial output and a modest rise in fixed-asset investment. Simultaneously, the rise in mine supply has intensified the pressure, as operations at the Tara mine in Ireland have resumed and output at the Kipushi mine in Congo has been increased.

Nonetheless, persistent downside support is being derived from ongoing supply constraints in certain areas and previous production interruptions. On the global front, the zinc market recorded a reduced deficit in 2025, with projections indicating a modest surplus in 2026 as mine supply enhances. Nevertheless, demand is projected to increase consistently at approximately 2% per year, maintaining a relatively stable long-term outlook.

From a technical perspective, the market is experiencing long liquidation, as evidenced by a significant decline in open interest coupled with decreasing prices. Immediate support is identified at Rs 301.5, with a breach below this level likely leading prices to decline toward Rs 296.3. On the upside, resistance is positioned at Rs 312.1, and a movement above this threshold could propel prices toward Rs 317.5.