Key Facts
- —What happened Zinc hit a four-year high near US$3,823 a tonne, lifting Nexa Resources 9.45% and Buenaventura 3.83% on Friday.
- —How big a jump Nexa shares closed at US$15.40, up US$1.33, while LME zinc touched US$3,823.85, its strongest since mid-2022.
- —The catch Nexa lost ~7,000 tonnes of zinc to a May fire, but full-year guidance is unchanged.
- —What it means The rally stems from real supply cuts in Peru and Bolivia, not speculation, firming price floors.
- —Who it touches Peru’s Cerro Lindo and El Porvenir mines are set to cut zinc output by 7% and 3% respectively in 2026.
- —What comes next Investors watch Nexa’s Aripuanã and Cerro Lindo ramps-up; faster supply recovery could cap price gains.
Today’s Focus
Zinc’s rally to a four-year high on Friday, August 21, 2026, handed Latin America’s proxy miners a strong session. Nexa Resources jumped US$15.40 to +9.45%, while Buenaventura added US$35.47 at +3.83%.
The move reflects tightening mine supply in Peru and Bolivia, where sequencing and grade issues are curbing concentrate output just as demand for galvanised steel recovers in construction and infrastructure.
Nexa’s own operational story matters: a May fire at its Cajamarquilla smelter cut around 7,000 tonnes of second-quarter refined zinc, but recovery is underway and full-year guidance is unchanged, leaving investors free to ride the price rally.
With LME zinc quoted around US$3,823 per metric ton, the question for the week ahead is whether speculative buying holds or profit-taking emerges after such a steep run.
What matters today. Zinc’s rally is being driven by real supply constraints in Peru and Bolivia, not just speculative flows, which is why Nexa and Buenaventura are moving so sharply.
01 The session in one read
Zinc’s climb to a four-year high on Friday, August 21, 2026, lit up Latin America’s two main listed zinc proxies. Nexa Resources, which mines and smelts in Peru and Brazil, closed at US$15.40 US dollars, up +9.45% in a single session.
Compañía de Minas Buenaventura, a more diversified Peruvian miner, rose +3.83% to US$35.47 US dollars. The smaller gain reflects its broader base-metals mix, with zinc only one part of a portfolio spanning silver, gold, copper and lead.
The evidence points to a genuine concentrate squeeze: Peru’s Cerro Lindo is guided to produce 7% less zinc in 2026, El Porvenir about 3% less, and Cajamarquilla lost output to a fire. That physical tightness, layered on top of speculative buying, gives the rally a firmer floor than a purely financial move. The variable to watch is any restart or acceleration at Aripuanã and Cerro Lindo in the second half, which could loosen the market quickly.
02 The board
The London Metal Exchange quote clustered around US$3,743 to US$3,823 per metric ton on Friday, with one benchmark reading at US$3,823.85, its strongest since mid-2022. TradingEconomics recorded zinc at US$3,823.40, up 2.00% from the previous day’s close.
A European quote translated the move into 3,401 euros per ton, roughly US$3,980, with a daily gain flagged at 2.96%. The consistency across currency bases shows this was a broad rally, not a dollar-effect artefact.
| Asset | Level | Change |
|---|---|---|
| Nexa Resources | US$15.40 | +9.45% |
| Buenaventura | US$35.47 | +3.83% |
Source: RT close, 2026-08-21. 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 | 205,079.25 | -0.17% | +21.85% | 205,430.33 | 168,310 | 167,142 | — |
| IPSA | 10,972.40 | +0.02% | — | 10,970.29 | 11,210 | 10,984 | 1,513,213,483 |
| IPC MEX | 68,969.69 | +0.06% | +12.17% | 68,929.72 | 66,121 | 65,405 | 108,886,187 |
| MERVAL | 3,017,221 | — | +30.51% | 3,022,485 | 3,042,365 | 2,991,150 | — |
| COLCAP | 2,521.34 | -1.75% | — | 9.04 | 9.05 | 9.02 | 4,133 |
| BVL PERÚ | 59,664.64 | +0.40% | — | — | — | — | — |
| 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
Traders and analysts pointed to supply fears in key producing countries. Peru’s Cerro Lindo is guided to 77,000–85,000 tonnes of zinc in 2026, a 7% decrease from 2025 due to mine sequencing, while El Porvenir is set for a 3% decline.
At the same time, demand for galvanised steel is recovering as construction and infrastructure projects restart across Latin America, North America and Asia. Zinc’s role in rust-proofing steel makes it the world’s fourth-most-used metal, and that physical pull is tightening the concentrate market just as speculative money piles in.
04 The Latin American read
Peru, Bolivia and Mexico are the region’s major zinc producers, and their mine plans are now central to the global supply debate. Nexa’s own operations illustrate the tension: first-half zinc output of 159,000 tonnes represented only about 47% of full-year guidance, implying a second-half ramp-up at Aripuanã and Cerro Lindo.
The Aripuanã mine in Brazil is forecast to boost zinc production by about 49% in 2026, to 45,000–60,000 tonnes, as plant operations stabilise and a fourth filter is installed. Nexa’s consolidated zinc production is guided to rise about 6% this year, even as Peruvian mines face grade and sequencing headwinds.
05 The names to watch
Nexa Resources is the purest Latin American zinc play, with smelting output of 147,000 tonnes of zinc metal and oxide in early 2026, up 11% year-on-year. The May 13 fire at its Cajamarquilla smelter in Peru cut second-quarter refined production by about 7,000 tonnes, but the company says lost tonnage will be recovered in the second half.
Buenaventura offers smaller but still meaningful zinc exposure: second-quarter output was 7,360 metric tons, down 5% year-on-year, with Uchucchacua contributing 7,018 tonnes and Tambomayo 342 tonnes. Full-year guidance of 27,800–31,000 metric tons keeps it a niche supplier within the Peruvian base-metals complex.
06 The outlook
The first-quarter average LME zinc price of about US$3,241 per ton, up 14% year-on-year, set the stage for August’s four-year high. With Nexa’s 2026 guidance assuming a benchmark treatment charge of about US$175 per tonne, smelter margins are getting a double boost from higher prices and recovering volumes.
The key test will be whether Aripuanã and Cerro Lindo deliver their second-half ramp-up. Any faster-than-expected supply rebound could cool speculative buying, but for now the physical tighten argues for a durable floor under zinc.
07 What to watch
- Aripuanã ramp-up: Nexa’s Brazilian mine is guided to boost zinc output by 49% in 2026; faster stabilisation could ease the supply squeeze and cap price gains.
- Cajamarquilla full restart: Any delay in bringing the final casting line back online could tighten refined zinc supply further in the third quarter.
- Cerro Lindo sequencing: Peru’s largest Nexa zinc mine is guided for a 7% output decline; confirmation of lower grades would reinforce the bullish supply story.
- Speculative positioning: LME commentary flagged speculators as part of the rally; a shift in fund flows could trigger sharp profit-taking after the four-year high.
Frequently Asked Questions
Why did zinc rise on Friday, August 21, 2026?
Zinc hit a four-year high around US$3,823 per metric ton because mine supply in Peru and Bolivia is tightening on sequencing and grade issues, just as galvanised-steel demand recovers.
Why did Nexa Resources jump 9.45%?
Nexa is the most direct listed zinc proxy in Latin America, with mines and smelters in Peru and Brazil. Higher zinc prices and recovering volumes from the Cajamarquilla smelter fire boosted investor sentiment.
What is the Cajamarquilla smelter issue?
A fire on May 13, 2026 forced Nexa to suspend some casting operations, cutting second-quarter refined zinc by about 7,000 tonnes. The lost output is expected to be recovered in the second half.
Is Buenaventura a pure zinc play?
No, Buenaventura is a diversified Peruvian miner with silver, gold, copper, lead and zinc. Its zinc output fell 5% year-on-year in Q2 2026, making it a smaller, less leveraged zinc proxy than Nexa.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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