Zinc slipped from its highest level in over four years, tracking losses across other metals while traders monitored supply tightness on the London Metal Exchange.

Futures initially climbed as much as 1% before turning lower on the LME, with all metals facing pressure as European stock markets dropped.

Despite the broader decline, the zinc market shows signs of a near-term supply squeeze, with spot metal commanding a widening premium over futures—similar to trends seen in copper.

Traders continue to watch LME spreads closely as indicators of underlying tightness in the physical market.