Zinc prices on the London Metal Exchange (LME) rose to a new high at US$3,108/ton in early trading today (November 4), intensifying galvanizing costs. The nearly 18% surge over six months was caused by massive global smelter production cuts and rapid inventory depletion.

LME deliverable zinc stocks have dropped to 24,425 tons, roughly one day of global consumption. This severe spot shortage has pushed the spot premium to a 27-year record of US$323/ton, forcing buyers to cover at high prices and increasing market concerns over extreme supply imbalance.