COMMENTARY: LME zinc squeeze signals deepening supply risks for the West

A zinc squeeze on the London Metal Exchange is pointing to worsening supply risks for Western buyers, according to a Reuters commentary. LME three-month zinc hit a new four-year high of $3,990 per metric ton on Monday, while registered inventory stays low at 100,525 tons, with nearly a third tied up in cancelled warrants awaiting physical load-out. Cash premiums over the three-month contract topped $230 per ton last week before easing to $139, signaling acute tightness. The piece ties the rally to mine underperformance and weaker smelter concentrate treatment terms. In the first half of 2026, global mine output fell 2.6% year-on-year, with disruptions at major sites including Antamina, Red Dog, Golden Grove and Garpenberg.