European special high-grade (SHG) zinc spot premiums were unchanged this week, but sellers continue to offer at higher levels because of a persistent drop in warehouse stocks.

The Argus weekly assessment for the SHG zinc in-warehouse Rotterdam premium was unchanged today at $220-250/t, after a rise last week owing to falling inventories across Europe. Offers were heard at up to $300/t delivered, with most sources pegging the market at $240/t in-warehouse. While some customers are reluctant to enter the spot market because of the increasing premiums, several sources reported an uptick in demand.

"Those that are not well covered could be caught short if there is a recovery in the market and they want to participate," a market participant told Argus, noting that some in the market are running low on inventory.

The three-month zinc contract on the London Metal Exchange (LME) fell by 0.88pc on the week to $2,651.50/t in today's official session. Prices began falling in March owing to uncertainty resulting from US president Donald Trump's tariff announcements in April, prompting more enquiries as customers sought to secure material at these lower price levels. On-warrant tonnage of zinc in LME-registered warehouses dropped by a further 2pc on the week to 74,725t.

Hudbay temporarily halted production at its copper-zinc Snow Lake project in Manitoba after local authorities issued early evacuation notices on Tuesday because of wildfires.

The China Zinc Smelters Purchasing Team (CZSPT) has raised its treatment charge (TC) guidance for imported zinc concentrate for the third quarter of 2025, it said at an industry conference held on 4 June in Xining in northwest China's Qinghai province. CZSPT's TC guidance for the third quarter was set at $80-100/dry metric tonne (dmt), up from $70-90/dmt in the second quarter and $10-30/dmt in the first quarter. The higher TC guidance is mainly the result of much higher zinc concentrate imports to China in January-April, market participants said.