Recent fluctuations in zinc prices highlight the growing supply pressures of the crucial metal, which analysts predict will extend into 2025. As of December 1, zinc prices had dropped by 0.4% to $3,089.50 per ton, following a dramatic surge caused by one of the largest withdrawals of zinc from the London Metal Exchange in over a decade.
These price swings signal potential consequences from the ongoing US-China trade conflict, particularly with President-elect Donald Trump’s threat to impose an additional 10% tariff on all Chinese goods. As China dominates the global zinc market with an annual output of 4.2 million metric tons, further tensions could disrupt both the supply and pricing of zinc, a metal vital for industries like semiconductors and electronics.
The turbulence in the zinc market offers a glimpse into the broader economic implications of escalating trade disputes between the two largest economies in the world, underlining the critical link between global politics and commodity markets.
