Zinc Wrap: Nexa, Buenaventura Slip as LME Sits Near US$3,940
Key Facts
- LME zinc held a tight band with the three-month contract near US$3,931 and cash metal around US$4,018 a tonne at Monday’s close.
- Nexa Resources slipped to US$12.86, a daily fall of -1.15% in New York trading on September 21.
- Buenaventura dropped further ending Monday at US$33.59, down -2.16% on the day despite steady Peruvian zinc output.
- Supply focus stays on Peru where the Cajamarquilla smelter remains the largest zinc smelter in Latin America.
- Demand is tied to galvanised steel used in construction and infrastructure, keeping investors focused on housing and warehousing cycles.
- The metal itself barely moved with zinc quoted at US$3,935.23 a tonne, up just 0.04% day-on-day.
Today’s Focus
Zinc stayed firm but flat on Monday, September 21, 2026, with LME three-month metal near US$3,931 a tonne and cash metal around US$4,018, pointing to a tight nearby market.
Latin American producer shares did not follow that strength: Nexa Resources closed at US$12.86, down 1.15%, and Buenaventura ended at US$33.59, a 2.16% decline.
The move reflects investor caution about miners rather than weakness in zinc itself, with Peru, Bolivia and Mexico still central to global supply and galvanised steel demand keeping the metal in a high band.
What matters today. The gap between a firm LME zinc price and falling producer shares shows the market is rewarding the metal, not yet the miners.
01 The session in one read
Zinc closed Monday, September 21, 2026, in a tight and elevated range, with London Metal Exchange cash metal around US$4,018 a tonne and the three-month contract near US$3,931 a tonne. That backwardation, where nearby metal costs more than future delivery, signals immediate supply tightness.
Yet the two Latin American shares most used as zinc proxies fell. Nexa Resources, the Peru and Brazil miner and smelter operator, slipped 1.15% to US$12.86 in New York trading.
Buenaventura, the Peruvian precious and base metals producer, dropped 2.16% to US$33.59, a sharper decline that suggests investors were taking profit on miners even as the underlying metal held its ground.
The near-term story is one of a tight refined market holding zinc above US$3,900 a tonne, while equity investors take profits in Latin American producers after a strong run. Nexa’s Cajamarquilla smelter recovery and Buenaventura’s modest zinc volumes mean supply is not flooding the market, but it is also not shocking to the upside. The variable to watch is whether LME cash zinc can hold its premium over the three-month contract into October’s physical buying season.
02 The board
The widely followed TradingEconomics quote for zinc stood at US$3,935.23 per tonne, up a marginal 0.04% on the day, confirming a broadly stable but historically high price band. LME three-month zinc had climbed from US$3,794 to US$3,931 per tonne over the previous five sessions.
The share prices told a different story. Nexa’s US$12.86 close and Buenaventura’s US$33.59 close both marked down days, with the Peruvian miner falling nearly twice as fast as Nexa.
| Asset | Level | Change |
|---|---|---|
| Nexa Resources | US$12.86 | -1.15% |
| Buenaventura | US$33.59 | -2.16% |
Source: RT close, 2026-09-21. 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 | 186,595.60 | +0.74% | +21.85% | 185,229.17 | 168,310 | 167,142 | — |
| IPSA | 11,357.82 | -0.21% | — | 11,381.18 | 11,210 | 10,984 | 1,513,213,483 |
| IPC MEX | 63,536.96 | +0.25% | +12.17% | 63,375.93 | 66,121 | 65,405 | 108,886,187 |
| MERVAL | 2,998,956 | -0.76% | +30.51% | 3,022,485 | 3,042,365 | 2,991,150 | — |
| COLCAP | 2,565.55 | +0.68% | — | 9.04 | 9.05 | 9.02 | 4,133 |
| BVL PERÚ | 59,344.04 | +0.31% | — | — | — | — | — |
| 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
Zinc’s core industrial use is galvanised steel, the rust-resistant coating used on buildings, bridges, warehouses and housing infrastructure. That keeps the metal tied to construction cycles in North America and emerging markets, where logistics warehousing has been a steady source of demand.
On the supply side, Peru remains the anchor for Latin American zinc. Nexa operates five polymetallic mines, including two underground mines in Peru’s Central Andes, and runs the Cajamarquilla smelter near Lima, the largest zinc smelter in Latin America.
Buenaventura’s second-quarter production of 7,360 tonnes of zinc came mainly from its Uchucchacua and Tambomayo mines, but the company reported a 5% year-on-year fall, blaming lower ore grades at Tambomayo rather than any deliberate volume cut.
04 The Latin American read
Bolivia and Mexico add regional supply depth, but Peru’s combination of mining and smelting gives it outsized influence on refined zinc flows to the Americas and Asia. Nexa also smelts in Brazil, at Três Marias and Juiz de Fora in Minas Gerais, reinforcing Brazil’s role in the regional value chain.
The May 13, 2026 incident at Cajamarquilla cut an estimated 7,000 tonnes of refined output, about 2% of annual volumes, but Nexa expects to recover that in the second half without changing its 2026 sales guidance.
That recovery, plus steady offtake from Buenaventura’s Uchucchacua and Tambomayo mines, suggests Latin American supply is adequate, not urgent, which may explain why producer shares lagged the metal on Monday.
05 The names to watch
Nexa Resources is the purest large-cap zinc play for foreign investors, combining mining in Peru and Brazil with smelting capacity that ties it directly to refined zinc supply. The US$12.86 close leaves it exposed to both metal prices and operational recovery from the Cajamarquilla disruption.
Buenaventura offers broader precious and base metals exposure, with zinc as a meaningful but secondary driver. Its US$33.59 close and 5% zinc production decline show that grade quality, not volume ambition, is now the key constraint.
06 The outlook
The market looks set to test whether cash zinc can hold its premium over three-month metal into the October physical buying season, when galvanisers typically restock ahead of winter construction deadlines in the northern hemisphere.
If construction activity in the United States and Europe holds, the high US$3,900 to US$4,000 band should persist. The bigger question is whether Latin American miners can convert that into share price strength after Monday’s down day.
07 What to watch
- LME cash-to-three-month spread: A widening backwardation would confirm physical tightness and support zinc near US$4,000 a tonne.
- Nexa Cajamarquilla recovery: Any delay in recovering the 7,000 tonnes lost in May could tighten refined supply in the Americas.
- Buenaventura ore grades: Further grade slippage at Tambomayo could extend the 5% year-on-year zinc decline.
- US construction and warehousing: Galvanised steel demand from logistics and infrastructure is the main swing factor for zinc prices.
Frequently Asked Questions
Why did zinc producer shares fall when zinc was flat?
Investors took profit in Latin American miners even though LME zinc held near US$3,940 a tonne because the metal’s strength was not matched by fresh supply shocks.
What is zinc’s main industrial use?
Most zinc is used to galvanise steel, coating it to prevent rust in buildings, bridges, warehouses and housing.
Which Latin American countries matter most for zinc?
Peru, Bolivia and Mexico are major producers, with Peru particularly important because of mining and the Cajamarquilla smelter, the largest zinc smelter in Latin America.
How did Nexa and Buenaventura close on Monday?
Nexa Resources closed at US$12.86, down 1.15%, while Buenaventura ended at US$33.59, down 2.16%.
Market data: RT
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