May 29 (Reuters) - JP Morgan said in a note that it expects a "higher-for-longer" zinc price environment for the rest of this year, citing supply issues despite muted demand.

JP Morgan cut nearly 300,000 metric tons from its 2026 global refined zinc production forecast, tightening the global balance by a similar magnitude, which is now expected to show a surplus of around 130,000 tons. It expects a 5% year-on-year contraction in 2026 mine supply growth, driven by a wave of disruptions and guidance misses from major producers spanning Sweden, the U.S., and Peru.

Three-month zinc CMZN3 on the London Metal Exchange fell 0.3% to $3,540 a metric ton.

"LME zinc prices are expected to remain in a higher for longer range of $3,400–$3,500/mt on average over the balance of 2026," the note added.