The zinc price on the London Metal Exchange (LME) surpassed the US$3,000/ton level yesterday (October 2), reaching US$3,020.50, the highest level since November last year. The price has risen by four consecutive days, with a total increase of 4.7%.

The increase was driven by sustained drops in LME zinc inventory, which has fallen by 61.5% so far this year to 40,350 tons. Besides, market expectations of two further Federal Reserve rate cuts this year and an improvement in US existing home sales are also a support to the zinc price.

However, softening demand in China, particularly due to the real estate slowdown, may suppress the price growth, though traders foresee a demand recovery in October.