WHAT IS IT?
Zinc is a bluish-white metal that is the fourth most consumed metal globally after iron, aluminum, and copper. It is primarily used to protect steel from corrosion — a process called galvanisation — making it essential to the construction and automotive industries.
FORMS TRADED
SHG Zinc (Special High Grade): 99.995% Zn. LME deliverable. Standard traded form.
Primary Zinc Alloys: Zamak alloys for die casting.
Zinc Oxide: Processed form for rubber, ceramics, cosmetics.
Zinc Dust: Used in paints and coatings.
KEY USES
Galvanised steel (primary use ~55%): Steel coated with zinc for corrosion protection. Used in construction, automotive, appliances.
Die casting alloys: Zamak for precision parts — door handles, toys, electronics housings.
Brass production (copper + zinc)
Zinc oxide for rubber vulcanisation (tyres need zinc oxide), sunscreen, ceramics
Batteries (zinc-carbon, alkaline, zinc-air)
Micronutrient fertilizers (zinc deficiency widespread in Asian soils)
GALVANISING PROCESS
Steel is dipped in molten zinc at 450°C. Zinc bonds metallurgically to steel, forming a zinc-iron alloy layer plus outer pure zinc layer. Provides barrier AND sacrificial protection (zinc corrodes preferentially, protecting the steel even if coating is scratched).
TRADE CORRIDORS
Major producers: China, Australia (Century Mine), Peru, India, Kazakhstan
Major buyers: China (largest consumer), Europe, USA, South Korea
Tetra relevance: South Korea steel industry uses significant galvanised steel.
PRICING BASIS
Benchmark: LME Zinc (USD/MT). Closely watches Chinese smelter operating rates and treatment charge (TC) negotiations between miners and smelters.
SPECIFICATIONS (SHG)
Zinc: min 99.995%
Lead: max 0.003%
Cadmium: max 0.003%
Iron: max 0.002%
Standard shapes: 25kg ingots or 1MT bundles