LME delivery ban will not disrupt metal shipments – Korea Zinc

Korea Zinc has told Fastmarkets that its zinc shipments will not be affected by the London Metal Exchange decision to suspend deliveries from the South Korean producer from April.

The LME announced on Wednesday January 14 that zinc deliveries from Korea Zinc would not be allowed into its warehouses from April 14.

A spokesperson for Korea Zinc said the restriction was temporary and was limited to warehouse warranting, adding that there was no change to the LME registration status of its zinc and lead metals.

“Most of our products are supplied directly to end users,” the spokesperson told Fastmarkets. “As a result, there is no disruption to sales or exports.”

Korea Zinc said the LME’s notice was preliminary and was issued because some internal control procedure enhancements identified during the exchange’s annual due diligence processes were not completed within the required timeframe.

“We are currently implementing the necessary remedial and normalization measures, and this measure does not affect our business operations or sales to customers,” Korea Zinc said.

The LME notice to customers said: “Please be advised that no further deliveries of Special High Grade Zinc brand KZ-SHG 99.995, produced by Korea Zinc Co Ltd, will be accepted for LME warranting with effect from 14 April 2026.”

Korea Zinc produced about 630,000 tonnes of zinc in 2024, and output was about 443,000 tonnes in the first nine months of 2025.

Zinc prices has hovered around $3,200 per tonne on Wednesday.

What are the latest zinc prices?

Fastmarkets’ weekly assessments of the zinc SHG min 99.995% ingot premium, dp fca Rotterdam and the zinc SHG min 99.995% ingot premium, dp fca Antwerp, both dropped to $215-225 per tonne on January 20, from $225-230 per tonne on January 13.

The weekly assessment of the zinc SHG min 99.995% ingot premium, ddp Midwest US was 17-20 cents per lb on Tuesday, down from 17.75-20.00 cents per lb on January 13.

“Despite the initial price response, the absence of follow-through buying indicates the market is unconcerned about the supply outlook, with smelter expansions in Europe and China set to generate annual surpluses in 2026 and 2027,” Fastmarkets analyst James Moore said.

Korea Zinc said it had submitted a corrective action plan to the LME and is strengthening the required internal control measures.

“We plan to complete all procedures within the first quarter of this year in close co-ordination with the LME… prior to April 14,” Korea Zinc said. 

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