LME Zinc Market Faces Severe Tightness as Cash-3M Spread Surges to over 320 USD/t

Published: Oct 22, 2025 00:04

Save

On October 21st, the LME zinc market experienced an exceptional physical squeeze, with the cash-to-three-month spread (Cash–3M) widening beyond $320 per ton—the highest level since 1997. According to LME data, total zinc inventories have fallen to 37,000 tons, including 13,000 tons of cancelled warrants, leaving only about 24,000 tons available for delivery, less than one day of global consumption. Meanwhile, six institutions reportedly hold nearby long positions equivalent to roughly 300% of available stocks, intensifying short-covering pressure and exposing short holders without physical delivery capacity to significant losses. SMM will continue to monitor market developments and the potential impact of Chinese zinc exports on supply relief.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

7 mins ago

Multiple Disturbances Weighed on Zinc Prices, with SHFE and LME Centers Moving Lower Throughout the Week [SMM Market Review - Zinc Price Weekly]

[Multiple Disruptions Weigh on Zinc Prices; SHFE and LME Prices Showed Continuous Downward Movement This Week] Early in the week, preliminary negotiations between the US and Iran raised hopes for a peace agreement, boosting market optimism and pushing LME zinc higher. Subsequently, expectations for US Fed interest rate hikes intensified, leading to a broad decline in global equities and non-ferrous metals. The US dollar index strengthened, and LME zinc continued to pull back...

7 mins ago

24 mins ago

Intense Negotiations Over July Zinc Concentrate TCs in China Continue

[Domestic Ore Market] At the end of June, China's domestic smelters and mines began negotiations for July zinc concentrate TCs. The discussions were intense overall, with sellers reportedly still seeking reductions in July TCs. Final pricing for July is pending the outcome of next week's negotiations.

24 mins ago

Bolivian Transport Disruptions Limit Concentrate Offers, Prices Drop Amid Low SHFE/LME Ratios

[Imported Concentrate Market] Bolivian transportation disruptions lingered this week, keeping imported ore offers relatively limited in the market. However, traders were strongly inclined to lower their quoted prices, with ordinary ore offers heard dropping to negative triple-digit levels. Yet persistently low SHFE/LME zinc price ratios kept smelters largely uninterested, resulting in overall sluggish transactions in the market this week.

24 mins ago