Zinc is a chemical element, which is also known by the symbol Zn and the atomic number 30. Zinc is a bluish-white element that can be refined into metal. It is the first element in Group 12 (IIB) of the periodic table. It is also worth mentioning that zinc (Zn) is chemically similar to magnesium, as both elements present only one normal oxidation state (+2), and the Zn2+ and Mg2+ ions are similar in size. Zinc is the 24th most abundant element in the Earth’s crust, and it has five stable isotopes. The largest  workable zinc mines are situated in Australia, Asia and the United States. 

How is Zinc Produced? 

The supply of zinc originates from two sources, the first of which is primary production (mining). The other method is secondary production (recycling). Mining provides most of the zinc used, and the US Geological Survey (USGS) measures the quantity recovered from recycling in the United States as approximately 25% of total consumption. 

1: Primary Production:

Almost 80% of zinc is mined in underground mines. Surface mining in open pits accounts for approximately 8% of mining, while mines that use both methods make up the remaining 12%. 

Many types of ore contain zinc, including zinc sulfide (sphalerite), zinc carbonate (smithsonite), zinc silicate (calamine) and manganese and iron compounds known as franklinite. 

Zinc and lead ores normally occur together, and they normally contain other precious metals, such as gold, silver and copper. 

There are four steps in the primary production process: 

1: Ore concentration 

2: Smelting 

3: Refining 

4: Alloying.

Historical Data Table:

Zinc Historical Price Data

Monthly Change

What Affects the Price of Zinc?

The price of zinc is mostly influenced by five factors: 

1: Chinese Demand 

2: Chinese Supply 

3: Global Stocks 

4: US Demand

5: Input Prices

1: Chinese Demand 

China plays a meaningful role in determining zinc prices, as the Dragon Nation is the top consumer of refined zinc used in galvanized steel. Therefore, the leading indicator of the demand for zinc in China could be associated with the steel demand. Decisions about whether to undertake or hold off on infrastructure projects can create meaningful fluctuations in steel demand. Consequently, such decisions can have either a positive or a negative impact on the zinc market.

Furthermore, China’s monetary policy could also be considered as one of the key factors that can affect the demand for both steel and zinc. If the People’s Bank of China stimulates its monetary policy, this can stoke the demand for these commodities; conversely, tighter monetary policies can depress the demand.

As we are all well aware, China’s GDP growth has decreased significantly in recent years, which has raised doubts concerning the future demand for all industrial metals, such as zinc. In turn, we can say that Zinc is heavily dependent on Chinese demand.

Chinese Supply:

The country’s increasing environmental awareness could also be considered as one of the key factors that is impacting zinc output in China. It should be noted that poor air quality has forced the government to take a harder look at the mining industry as a contributor to pollution. If China controls the output of zinc to deal with this problem, the country will be more reliant on imports, which could drive zinc prices higher.

Global Stocks:

The London Metals Exchange (LME) keeps a record of global stock levels for industrial metals, including zinc. Therefore, traders keep their eyes on inventory levels for clues about shortages or surpluses in terms of the supply.

If inventory levels fall, the market is likely to face a shortage of zinc in the near future, which tends to underpin prices for the metal. Conversely, if stockpiling occurs and inventory levels grow, the market may face an oversupply of the metal, which tends to undermine the prices.