Zinc futures in the UK rose to $3,220 per tonne, approaching the three-year high of $3,250 on January 6th, aligned with the momentum for base metals on concerns of tight supply. Refined zinc production was on track to fall 2% last 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 $100 per ton after being negative $115 in the end of last year, according to private surveys. Consequently, stocks at the LME sank to 100 thousand tonnes, compared to 230.5 thousand tonnes at the start of last year, after their near depletion of on-and off-warrant stocks at the start of the fourth quarter. Base metals also received broad support from expectations that electrification push and datacenter investments would maintain consumption of industrial inputs despite headwinds to global growth.
