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A beginner’s guide to zinc: Price, uses & market overview
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On this page, we explore everything you need to know about zinc. Gain insights into zinc market trends, pricing mechanisms, and the environmental impact of zinc.
Read on to learn more about this popular commodity and find links to beginner friendly guides explaining how you can get involved in zinc.
What is zinc?
Copy link to sectionZing is an industrial metal that is the 24th most abundant element in the Earth’s crust. Zinc was first discovered thousands of years ago in the Middle East and has been a crucial mineral for various cultures throughout history.
Today, zinc is pivotal for many applications with its primary role being in the galvanisation of steel to prevent corrosion. Zinc is used to coat steel structures including buildings and bridges to promote longevity and structural integrity.
It is also used in the production of brass and bronze, both of which are used in manufacturing, construction, and the automotive industry. Zinc-carbon and zinc-air batteries are another important use for zinc. In agriculture, zinc plays the role of a vital nutrient, promoting plant growth and development.
Zinc market overview
Copy link to sectionThe zinc market is vast, versatile, and it’s a popular commodity. Over 13 millions tonnes of zinc is procured and consumed each year. Most of the growth and demand for zinc comes from China and India’s infrastructure growth. A small portion of zinc comes from recycling, however most the annual supply is mined.
Like other metal commodities, zinc is traded on exchanges like the London Metal Exchange (LME) and the Shanghai Futures Exchange (SHFE). The price of zinc has fluctuated over the years but reached a high of $2,900 a tonne in 2018 and 2022. Since then, the value of zinc has eased to around $2,500.
Is zinc valuable?
Copy link to sectionYes, zinc is a valuable commodity and there are numerous reasons why investors are attracted to the market. We have highlighted some of these key fundamentals below, explaining what they are and why they matter.
- It has rust-prevention properties. Over half of all mined zinc is used to galvanise steel and iron to prevent corrosion. The protective qualities of zinc are unmatched by any other material which makes it irreplaceable for many industries including construction, automobiles, and utilities.
- Zinc is essential for human health. For humans, zinc is an essential nutrient. It is mainly beneficial for cellular function and growth. Many humans do not consume enough zinc to meet their requirements. Zinc deficiencies can lead to major health complications.
- It is used for batteries and energy storage. Zinc and zinc oxide are used to produce batteries and energy storage solutions. Scientists are already working on new technologies to incorporate zinc batteries into electric vehicles and electricity grid improvements.
- There is a limited supply of zinc. While zinc is one of the most abundant nutrients in the Earth’s crust, there has been a decline in zinc ore grades in recent years. As mining new reserves becomes more challenging, zinc prices could increase over the long term.
How to invest in zinc
Copy link to sectionYou can invest in zinc by using a commodity trading platform. These platforms offer a range of commodities and are very easy to use. There are different platforms suitable for specific requirements.
Some let you buy zinc, others let you trade zinc, and many are designed for investing in the grain. Visit our dedicated guide to discover how to invest in zinc.
zinc in your investment portfolio
Copy link to sectionA diverse investment portfolio can help protect you during market uncertainty, and the inclusion of zinc can add value while allowing you to spread your money across various markets.
Zinc often moves independently to traditional investments like stocks and bonds. You can include zinc in your portfolio as a hedge against potential losses. During times of economic uncertainty, investors view commodity metals such as zinc as attractive options.
Zinc vs other commodities
Copy link to sectionZinc is part of the metals family of commodities, including gold, platinum, and palladium. Each commodity is unique in its own way and offers different features for investors and traders. You can learn more about specific precious metals using our dedicated guides below.
- Gold. Gold is the most popular precious metal in the world.
- Platinum. Platinum is more expensive than gold on a weight-for-weight basis.
- Palladium. Palladium is a rare metal with industrial use.