- Benchmark electrolytic zinc price rises 20% since beginning of 2026
- Yen trades near four-decade low, increasing landed costs of imports
Japan Metal Daily: Japan’s benchmark electrolytic zinc price climbed to a four-year high after Mitsui Mining raised its listed price by JPY 18,000/t to JPY 658,000/t on 10 July 2026. The latest revision surpassed the previous peak recorded in April 2022 by JPY 6,000/t. The increase was driven by a combination of stronger London Metal Exchange (LME) zinc prices and the continued depreciation of the Japanese yen, which significantly increased import replacement costs for domestic consumers.
The benchmark price has risen by around 20% since the beginning of 2026. Domestic prices first crossed the JPY 600,000/t mark in April and have remained above that level since, reflecting sustained cost pressures from overseas markets and currency movements.
Global zinc prices remained elevated during the assessment period. LME cash zinc settled at $3,602/t on 10 July, while the three-month contract stood at $3,588/t. Although cash prices eased marginally from $3,622/t on 9 July following profit-taking, values remained near multi-month highs after speculative buying and improving macroeconomic sentiment supported the market. Expectations of a slower pace of US monetary tightening weakened the US dollar, encouraging investment flows into dollar-denominated base metals.
On the supply side, LME warehouse inventories continued to trend lower, declining to 114,800 t on 10 July from 119,200 t at the beginning of the month. The steady drawdown in exchange stocks highlighted continued physical offtake and tighter visible availability, providing underlying support to zinc prices.
Currency movements amplified the impact on Japan’s domestic market. The yen continued to trade near a four-decade low, with the monthly telegraphic transfer selling (TTS) rate hovering around JPY 163 per US dollar, compared with approximately JPY 130 during the previous domestic zinc price peak in 2022. The weaker currency substantially increased the landed cost of imported zinc, accelerating the rise in domestic benchmark prices.
Market participants expect Japanese zinc prices to remain supported through July, provided the yen stays weak and LME inventories continue to decline. However, further price direction will depend on global macroeconomic developments, speculative positioning in base metals, and downstream purchasing activity from the galvanising and die-casting sectors.
Note: This article has been written in accordance with a content exchange agreement between Japan Metal Daily and BigMint.
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