Zinc

Introduction

Zinc is the 24th most abundant element in the Earth's crust and is the fourth most common metal in use, trailing only iron, aluminum, and copper with an annual production of about 11 million tons. About 70% of the world's zinc originates from mining, while the remaining 30% comes from recycling secondary zinc. Commercially pure zinc is known as Special High Grade and is 99.995% pure.

Zinc is commonly mined as a co-product with standard lead. The metal is most commonly used as an anti-corrosion agent. Galvanization, which is the coating of iron or steel to protect the metals against corrosion, is the most familiar form of using zinc.

Zinc plays biological role as well for humans, plants and animals. There are 2–4 grams of zinc distributed throughout the human body.

Major applications

Galvanizing: 47% - cars and construction
Die-casting: 19%- motor housings, door furniture, toys
Alloys: 14% - taps and pipes
Chemicals: 9% - Tires

Indian Scenario

India accounts for around 4% of global Zinc production, Hindustan Zinc Ltd. Being the largest producer.
India is one of the fastest growing regions of zinc consumption in the world. Indian zinc demand is likely to grow 12-15 percent per annum compared with the global average of 5 percent. Growth in steel sector is the main factor behind the rise in domestic consumption as 70 percent of India’s zinc use is accounted by steel galvanizing.
India hopes to become self reliant in zinc production by end of 2010. Industry estimates place that India’s annual production has to touch 14 tons per year by 2020 if it has to sustain 10 percent growth till 2010 and at 7 percent rate thereafter.
Asia and especially India have seen a marked pickup in demand and with India increasing its infrastructure building, zinc demand is likely to grow strongly for many years to come.

Factors influencing Zinc prices

London Metal Exchange remains the benchmark for pricing. Indian companies set their prices based on global prices only. The major factors influencing Zinc prices are:

Global demand-supply scenario in major consuming industries and countries
Prices of other industrial metals e.g. Copper, Aluminum, and Lead
Inventory movement in LME warehouses
Growing participation of Commodity Funds

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Zinc