Zinc Pricing - History and Future Perspective

Zinc Pricing – History & Future Perspective

How Much Zinc Is There?

To start this topic, it is important to define a few terms. A

resource

is the concentration of a mineral

that is of economic interest in the earth’s crust. Currently the world’s zinc resource is measured at

approximately 1.9 billion tonnes. A

reserve

is a portion of the resource which has been measured and

which is, or may become in the close future, available for production.

approximately 250 million tonnes available.

This increase in zinc reserve is associated with

new exploration, and the creation or

expansion of mines. These activities however

may take several years to develop and are

dependent on the current and forecast zinc price.

Recycling/recovering of zinc continues to be a growing supply source. Currently 4 million tonnes of zinc

are recycled each year. By the 1980’s, the majority of vehicles manufactured in North America were

galvanized for corrosion protection. Since then the number of vehicles being galvanized has almost

tripled. We are only just starting to see these end-of-life vehicles with zinc coated steel entering the

products, etc.), and rolled zinc (pennies, etc.). Zinc prices are

therefore very dependent on the industries that use zinc coated

steel such as the automotive and construction.

Another important factor related to pricing of zinc is where zinc

is being consumed. The consumption of zinc in mature economies appears to be leveling off, whereas