zinc production cost

Zinc Production Cost, Market Trends and Dynamics

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Zinc Defined

Zinc (Zn) is a chemical element and transition metal belonging to the Group 12 of the periodic table with the atomic number 30. It appears to be a lustrous bluish-white metal that is abundant in the planet’s crust. Its properties include being brittle and crystalline at normal temperatures but turning malleable and ductile at 110°C and 150°C. In addition, it is somewhat reactive, can be combined with oxygen and other non-metals, and can react with dilute acids in order to release hydrogen.

The base metal is mainly used for galvanising steel, which protects the metal from unwanted corrosion. On the other hand, zinc alloys, such as brass, are crucial for various applications ranging from corrosion-resistant marine components to musical instruments. Furthermore, it is used to make die-castings in industries like automobiles, electrical and hardware.

Zinc Market Applications and Drivers

The zinc market is being propelled by the extensive use of the commodity by industrial and domestic end-users. Furthermore, the market is mainly driven by the growing use of steel alloys that employs zinc as the primary component. In addition, the construction of facilities and infrastructure is also impacting the market’s demand positively. As automobiles use zinc in metal and steel parts, the budding automobile industry, especially in developing countries, will further boost the market’s expansion. Additionally, the growing infrastructural developments that use zinc-coated metal alloys to add strength to structures are furthering the industry’s growth. Also, the increasing usage of metal coatings in electronic devices will further expand the industry’s development.

The Key Market Players for Zinc 

  • American Elements
  • The Doe Run Resources Corporation
  • Korea Zinc Co., Ltd.
  • Hindustan Zinc Limited
  • Glencore plc
  • Nexa Resources

Zinc Price Trend Based on Region in 2022

North America

Recently, the August Zinc market performed poorly in the North American region; however, values improved later in September. The lack of domestic demand from downstream industries, including personal care, pharmaceutical, and cosmetics, was primarily accountable for the frail market sentiments and this price trend in the US. Furthermore, the power outages in China due to extended heatwaves in the southern regions, along with the elevated operating pressure and closing off of industrial units, also disturbed the market dynamics in the US. Significant increases in rates by the US Federal Reserve later propelled the currency in the US to new all-time highs in over 20 years, damaging the business outlook worldwide. The metal price gains were limited by a strong dollar, which was backed by projections of a significant rise in interest rates after an unforeseen hike in consumer prices in the US that impacted the nation’s zinc values.

Asia Pacific

The values of zinc in China decelerated in the present, as EXW Shanghai back-and-forth were settled, although they subsequently effectively raised and finalised a settlement in September. At first, there was a drop in demand from the end-user industries in the domestic market in China. As per analysts, in spite of coal’s greater price, the producers in China were still unable to make money. The downward price trend in China was backed by improved operating pressure owing to inadequate market demand and an energy shortage caused by extended in the southern regions. To manage the spot supply crunch in the local market, a few smelters shipped their products, which raised the Shanghai market’s number of arrivals. This favourably impacted the zinc price trend in the Chinese market. In addition, the previous few weeks witnessed major drops in zinc production in China as a result of power issues, paired with short interruptions caused by rationing in Sichuan province this month.


The zinc price trajectory in the European region was the same as North America’s market trend, with values settling in July. The extended energy crisis, growing inflation, and the following concerns over the outlook for financial development provoked the most substantial declines in Europe. The major driving factor for inflation remained the cost of energy. The logistical problems in Germany caused by continuous blockages in transportation aggravated the economic downturn. Europe’s situation worsened due to the persistent port closures in China along with the turmoil in Russia and Ukraine. Owing to the stagnant demand from end-user sectors like pharmaceutical and nutraceuticals, local retailers reduced their costs. 

According to the blog by Procurement Resource, the demand for zinc is rising owing to its application in significant end-user industries, including automobile etc. Hence, due to these end-user applications, the procurement of zinc is necessary. For this task, our team of industry experts at Procurement Resource will help you navigate through all your market needs. 

Procurement Resource caters to a motley of industries and multiple products thereof concerning its prefeasibility reports, economic trends, procurement, supply chain, cost models, and whatnot. 

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