Zinc Wrap: Peru, Brazil Miners Rise on Supply Tightness
Key Facts
- Zinc traded near a four-year high on Thursday, August 20, 2026, supported by short-term supply tightening, production disruptions, and low inventories.
- Nexa Resources settled at US$14.07 a decline of -0.71% on the day, even as the broader zinc market firmed.
- Buenaventura closed at US$34.16 up +0.53%, making it the stronger of the two Latin American zinc proxies.
- Buenaventura disclosed an average zinc price of US$3,316 per tonne in the first quarter of 2026, against US$2,812 a year earlier, an 18% rise.
- Nexa operates five polymetallic mines and three zinc smelters in Brazil and Peru, describing itself as one of the major zinc producers worldwide.
- A live quote showed zinc at US$3,748.85 per tonne on 20 August 2026, up 1.10% from the previous day, with an alternate feed printing US$3,793.83.
Today’s Focus
Zinc held near multi-year highs on Thursday, August 20, 2026, because buyers are looking at a market that feels short of immediately available metal. Supply disruptions and low inventories are the two words that best explain the firm tone.
Latin American investors saw a split screen. Nexa Resources, the Brazil and Peru miner and smelter, eased to US$14.07, down -0.71%, while Peruvian precious and base metals producer Buenaventura rose to US$34.16, up +0.53%.
The zinc market itself was firmer. A live quote put zinc at US$3,748.85 per tonne, up 1.10% on the day, and another feed printed US$3,793.83 per tonne, reinforcing the sense of upward pressure without a single uniform spot number.
For foreign investors, the story is less about one day and more about the trend. Zinc has moved from a market worried about surplus to one worried about getting enough metal, and that shift is showing up in the share prices of companies that produce it.
What matters today. Zinc is being priced as a tight market, and the miners are the cleanest way to express that view.
01 The session in one read
Zinc spent Thursday, August 20, 2026, doing what it has done for much of this cycle: refusing to fall. One live quote showed zinc at US$3,748.85 per tonne, up 1.10% from the previous session, and another feed printed US$3,793.83, a reminder that there is no single exchange number for this market.
The common thread across the board was tightness. Futures are trading near a four-year high, and the drivers named by market participants are short-term supply disruptions, production problems, and inventories that remain uncomfortably low for consumers.
The direction of travel is clear: zinc is being supported by supply tightness rather than runaway demand, which makes it vulnerable to any restart of idled capacity or softening in galvanised steel orders. Nexa’s Cajamarquilla smelter, the largest in the Americas, is still recovering from a May fire that cost roughly 7,000 tonnes of refined output in the second quarter. The variable to watch is whether low LME inventories persist into September.
02 The board
The two Latin American zinc proxies moved in opposite directions. Nexa Resources, the Brazilian and Peruvian miner and smelter, settled at US$14.07, down -0.71% on the day.
Buenaventura, Peru’ largest publicly traded precious and base metals company, closed at US$34.16, up +0.53%. The divergence is a useful reminder that even inside a single commodity story, company-specific factors such as gold credits, hedging, and smelter margins can pull shares in different directions.
| Asset | Level | Change |
|---|---|---|
| Nexa Resources | US$14.07 | -0.71% |
| Buenaventura | US$34.16 | +0.53% |
Source: RT close, 2026-08-20. Where a commodity has no spot feed, an exchange-traded tracker or leading producer is shown as a labelled proxy.
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Latin America — Cross-Market Board
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 167,927.15 | +0.06% | +21.85% | 167,830.27 | 168,310 | 167,142 | — |
| IPSA | 11,237.90 | -0.03% | — | 11,241.32 | 11,210 | 10,984 | 1,513,213,483 |
| IPC MEX | 64,436.38 | +0.68% | +12.17% | 63,999.26 | 66,121 | 65,405 | 108,886,187 |
| MERVAL | 2,875,950 | +0.05% | +30.51% | 3,022,485 | 3,042,365 | 2,991,150 | — |
| COLCAP | 2,444.32 | -0.39% | — | 9.04 | 9.05 | 9.02 | 4,133 |
| BVL PERÚ | 58,380.78 | +0.54% | — | — | — | — | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| EUR/BRL | 5.95 | +1.01% | -5.83% | 5.89 | 5.98 | 5.94 | — |
| USD/MXN | 17.06 | -0.24% | -8.58% | 17.10 | 17.08 | 17.01 | — |
| USD/CLP | 913.98 | +0.04% | -5.67% | 913.65 | 915.11 | 906.68 | — |
| USD/COP | 3,140 | +0.03% | -22.04% | 3,139 | 3,141 | 3,105 | — |
| USD/PEN | 3.36 | -0.66% | -4.82% | 3.38 | 3.38 | 3.35 | — |
| USD/ARS | 1,493 | +0.10% | +12.96% | 1,491 | 1,494 | 1,480 | — |
| USD/UYU | 40.27 | +1.24% | +1.80% | 39.77 | 40.27 | 40.23 | — |
| USD/PYG | 5,939 | +1.68% | -19.54% | 5,841 | 5,939 | 5,925 | — |
| USD/BOB | 11.64 | -0.76% | +72.04% | 11.73 | 11.72 | 11.64 | — |
| USD/DOP | 58.34 | +1.25% | -3.44% | 57.62 | 58.34 | 58.04 | — |
| USD/CRC | 445.92 | +0.89% | -9.71% | 441.97 | 448.50 | 445.92 | — |
03 What moved it
The main prop under zinc is supply. Market notes point to short-term production disruptions and low inventories as the reasons prices are holding near multi-year highs.
On the demand side, zinc is a galvanising metal: it coats steel to stop it rusting, which means construction and infrastructure matter. The galvanised steel order book is not booming, but it is steady enough that any reduction in supply quickly shows up in price.
04 The Latin American read
Peru and Mexico are major zinc producers, and Peru is where much of the investor interest sits. Buenaventura told shareholders that its first-quarter 2026 average realised zinc price was US$3,316 per tonne, up from US$2,812 in the first quarter of 2025, an 18% rise.
Nexa Resources is the more direct proxy because zinc is its core business. The company operates eight units in Brazil and Peru, including five polymetallic mines and three zinc smelters, and it guides 2026 treatment charges above the 2025 level of US$80 a tonne.
05 The names to watch
Nexa Resources is the name to watch for pure zinc exposure in Latin America. It runs three mines and one smelter in Peru, plus two mines and two smelters in Brazil, and it describes itself as one of the major zinc producers worldwide.
Buenaventura offers a more diversified bet on Peruvian metals, mixing precious metals with base metals. It may not move one-for-one with zinc, but it is a major holder of mining rights in Peru and carries the broader country risk and opportunity.
06 The outlook
The outlook depends on whether the supply tightness is structural or seasonal. If production disruptions persist and inventories stay low into the fourth quarter, zinc could hold these levels or edge higher; if smelters restart or galvanised steel demand cools, the market would give back its premium.
07 What to watch
- Inventories: Low zinc inventories are the main support under price; any sustained rebuild would signal that tightness is easing.
- Nexa smelter margins: Cajamarquilla, the largest zinc smelter in the Americas, is still recovering from a May fire that cost about 7,000 tonnes of refined output in the second quarter.
- Peruvian supply: Peru is a major zinc producer, and any disruption at Buenaventura or other Peruvian operations would tighten the regional supply picture further.
- Galvanised steel demand: Zinc is used to galvanise steel for construction and infrastructure, so steel order books from Brazil and elsewhere in Latin America matter for the demand half of the equation.
Frequently Asked Questions
Why did zinc hold near multi-year highs?
Short-term supply tightening, production disruptions, and low inventories are keeping zinc futures supported near their best levels in four years.
Why did Nexa and Buenaventura move differently?
Nexa fell -0.71% to US$14.07 while Buenaventura rose +0.53% to US$34.16, reflecting different company profiles, smelter margins, and precious metals exposure.
What is the main use of zinc?
Zinc is primarily used to galvanise steel, protecting it from rust, which makes construction and infrastructure the core demand drivers.
How much did zinc rise on 20 August 2026?
One live quote showed zinc at US$3,748.85 per tonne, up 1.10% from the previous day, though a second feed printed US$3,793.83 per tonne.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
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