Zinc Prices Seen Falling to $3,100 as Weak Demand Offsets Supply Fears
NEXA has more than doubled off its 52-week low of $4.608 on light trading volume (0.1× avg).
Summary
Analysts expect zinc prices to retreat from current levels above $3,500 to $3,100-$3,350 by Q4 2026, as weak steel demand, particularly from China, offsets supply disruptions. This follows the fire at Nexa's Cajamarquilla smelter in May, which contributed to the recent price spike. The outlook directly impacts Nexa's revenue, given its significant zinc exposure. With LME stocks thin at just over 100,000 tons, any further smelter outages could trigger another price spike, but the base case is for easing prices as risk premiums fade.
At the time of this announcement, NEXA was trading at $11.99 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $1.6B. The 52-week trading range was $4.61 to $16.89. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.