07.04.202602:24:15UTC+00Zinc Holds Decline

Zinc futures traded just below $3,300 per tonne, extending their pullback from a near three-week high as concerns grew that a prolonged conflict in the Middle East could weigh on demand. President Trump issued an ultimatum to Iran to reopen the Strait of Hormuz, warning that the United States would target key bridges and power infrastructure if Tehran failed to comply. Iran rejected both the ultimatum and a mediated proposal for a temporary ceasefire.

The escalating tensions reinforced investor demand for the US dollar as a preferred safe-haven asset, adding downward pressure on dollar-denominated commodities such as zinc. Even so, the downside in prices remained limited amid improving industrial indicators and short-term supply tightness. China’s factory activity returned to expansion in March, bolstering expectations for stronger demand.

On the supply side, earlier mine closures and project delays continued to lend support to prices. However, the restart of Boliden’s Tara mine and the ramp-up of production at Ivanhoe Mines’ Kipushi project are expected to keep the zinc market in a modest surplus.