Key Facts
- Nexa Resources rose 3.94% to US$15.82 as investors chased exposure to a zinc market trading at four-year highs.
- Buenaventura advanced 2.10% to US$35.94 extending gains for Peru’s diversified precious and base metals producer.
- LME cash zinc settled at US$3,987 per tonne with the three-month contract at US$3,853, leaving a US$134 backwardation.
- LME zinc stocks stood at 95,050 tonnes a thin buffer that keeps near-dated metal expensive relative to later delivery.
- Three-month zinc hit US$3,858 on Tuesday morning marking a fresh four-year peak according to Reuters market commentary.
- Strong Chinese refined zinc exports are easing short positions helping London bears cover without forcing prices sharply lower.
Today’s Focus
Zinc-tracking Latin American miners rallied on Tuesday as the London market held near a four-year peak and warehouse stocks stayed thin. Nexa Resources, the Peru and Brazil base-metals producer, jumped 3.94% to US$15.82, while Peru’s Buenaventura rose 2.10% to US$35.94.
The LME cash contract settled at US$3,987 per tonne, a chunky US$134 above the three-month price of US$3,853. That backwardation signals buyers are paying up for metal available now, with LME warehouse inventories at just 95,050 tonnes.
Reuters commentary described London as a dangerous place for bears, noting that three-month zinc touched US$3,858 on Tuesday morning. Strong exports of refined zinc from China are providing relief for short positions without collapsing the price.
For Latin American producers, the setup is supportive: constrained supply, unexpectedly robust demand, and a physical market that rewards immediate delivery.
What matters today. A tight LME zinc market with backwardation is rewarding Latin American zinc miners, and Chinese export flows are the swing factor keeping shorts from capitulating.
01 The session in one read
Zinc-linked Latin American shares climbed on Tuesday as the London market consolidated near a four-year high. Nexa Resources, the Peru and Brazil zinc producer, closed 3.94% higher at US$15.82.
Buenaventura, the Peruvian polymetallic miner with meaningful zinc exposure, gained 2.10% to US$35.94. Both moves reflected a physical zinc market still trading with a steep premium for immediate delivery.
The combination of a US$134 cash premium over three-month metal and LME stocks at 95,050 tonnes points to genuine physical tightness rather than speculative froth. Nexa’s 3.94% jump and Buenaventura’s 2.10% gain show share investors are reading the same signal. The variable to watch is whether Chinese refined zinc exports continue flowing into London warehouses fast enough to rebuild deliverable supply and narrow the backwardation.
02 The board
LME cash zinc settled at US$3,987 per tonne, while the three-month contract closed at US$3,853 per tonne. That left cash trading US$134 above three-month metal, a condition known as backwardation that indicates buyers will pay extra for metal available now.
LME warehouse stocks of zinc sat at 95,050 tonnes, leaving little buffer against further supply disruptions. Three-month zinc briefly touched US$3,858 on Tuesday morning, a fresh four-year peak according to Reuters commentary.
| Asset | Level | Change |
|---|---|---|
| Nexa Resources | US$15.82 | +3.94% |
| Buenaventura | US$35.94 | +2.10% |
Source: RT close, 2026-08-25. 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 | 174,576.80 | +1.55% | +21.85% | 171,906.72 | 168,310 | 167,142 | — |
| IPSA | 11,450.75 | -0.76% | — | 11,537.98 | 11,210 | 10,984 | 1,513,213,483 |
| IPC MEX | 65,522.56 | -0.38% | +12.17% | 65,770.85 | 66,121 | 65,405 | 108,886,187 |
| MERVAL | 3,009,029 | +0.46% | +30.51% | 3,022,485 | 3,042,365 | 2,991,150 | — |
| COLCAP | 2,508.47 | -0.09% | — | 9.04 | 9.05 | 9.02 | 4,133 |
| BVL PERÚ | 60,117.56 | +0.55% | — | — | — | — | — |
| 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 price action reflects unexpectedly robust demand meeting constrained mine and smelter supply. London has become what Reuters called a dangerous place for bears, with short positions struggling to find deliverable metal.
Strong Chinese refined zinc exports are the crucial relief valve. These shipments are helping to ease pressure on traders who had bet on lower prices, preventing an even sharper spike while keeping the market tight enough to hold near four-year highs.
04 The Latin American read
Peru is the world’s second-largest zinc miner, and Mexico and Bolivia also rank in the global top ten. Peru’s large polymetallic mines feed smelters connected to global refined zinc trade flows, while Bolivia contributes zinc concentrate from high-altitude Andean deposits.
Mexico produces zinc alongside lead and silver, with concentrate shipped both to local smelters and export markets. For these economies, a backwardated London market supports mining revenues, royalties and export receipts.
05 The names to watch
Nexa Resources is the most direct New York-listed zinc proxy for Latin America, operating mines and smelters in Peru and Brazil. Its 3.94% gain on Tuesday shows share investors treating the stock as a leveraged bet on zinc tightness.
Buenaventura offers broader Peruvian exposure, blending zinc with precious metals. Its 2.10% advance reflects how higher base metals prices lift diversified Andean miners even when gold and silver dominate their revenue mix.
06 The outlook
With LME stocks at 95,050 tonnes and cash still commanding a US$134 premium over three-month metal, the zinc market is not giving bears an easy exit. Chinese refined exports are the key offsetting flow.
If those shipments keep arriving in London at current pace, the backwardation could narrow and cool the rally. If they slow, Latin American zinc producers may see further upside in both metal prices and their own share prices.
07 What to watch
- LME warehouse stocks: whether zinc inventories rise above 95,050 tonnes or keep draining, as this directly affects the cash premium
- Chinese refined zinc exports: the pace of shipments from Chinese smelters determines how quickly London short positions can cover
- Nexa Resources share price: as the most direct Latin American zinc proxy, it will signal share investor appetite for further upside
- Backwardation spread: the gap between cash and three-month zinc shows whether physical tightness is easing or intensifying
Frequently Asked Questions
Why did Nexa Resources rise 3.94% on Tuesday?
Nexa jumped to US$15.82 because the zinc market is trading at four-year highs with a steep backwardation, boosting earnings expectations for the Peru and Brazil producer.
What does backwardation mean for zinc?
Backwardation means cash zinc costs US$134 per tonne more than three-month delivery, signalling buyers will pay a premium for metal available immediately.
How tight are LME zinc inventories?
LME zinc stocks stood at 95,050 tonnes on Tuesday, a thin level that leaves the market vulnerable to supply disruptions and supports higher prices.
Which Latin American miners benefit from strong zinc prices?
Nexa Resources and Buenaventura are the main listed proxies, while Peru, Bolivia and Mexico all earn export revenue from zinc concentrate production.
Market data: RT
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
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