Zinc futures in the UK eased to $3,060 per tonne from the near one-year high of $3,310 from November 3rd, tracking a broad pullback for base metals as soft manufacturing PMIs in China and the US pressed against industrial sentiment. Still, reductions in zinc refining capacity maintained most of the metal’s rally since April. Refined zinc production fell over 2% this year despite the 6.3% jump in mined output, consistent with output curbs among smelters in Kazakhstan and Japan, with the latter being pressured by the closure of the key Toho Zinc Annaka plant. Likewise, treatment charges for zinc rose toward $90 per ton after being negative $115 in the end of last year, according to private surveys. Consequently, stocks at the LME sank to 34 thousand tonnes, compared to 230.5 thousand tonnes at the start of the year. The value corresponds to less than one day of global demand, resulting in the sharpest cash to 3-month contract spread since at least 1997.
