About Zinc
Most zinc is used to galvanise steel so it resists corrosion, which ties demand to construction, infrastructure and car manufacturing. Mine and smelter supply both matter, and treatment charges show how tight the concentrate market is.
What moves the zinc price
- Steel production and construction activity, especially in China.
- Mine supply and smelter treatment charges.
- Energy costs for smelters.
- LME and Shanghai exchange inventories.
Follow the steel and construction cycle
Because most zinc is used to galvanise steel for buildings, infrastructure, cars and appliances, zinc demand rises and falls with construction and steel output, especially in China. Chinese property activity has therefore been a key swing factor in recent years.
Mines, smelters and treatment charges
Zinc concentrate from mines is processed by smelters, which earn a treatment charge. When mine supply is plentiful, treatment charges rise; when concentrate is scarce, they fall and smelters may cut output. Mine closures and openings therefore show up first in treatment charges before reaching refined-metal prices. European smelters are also sensitive to energy prices.
Contract specifications
| Global benchmark | LME Zinc, 25 tonnes, US dollars per tonne |
|---|---|
| Main use | Galvanising steel against corrosion (around half of demand) |
| Other uses | Die-casting alloys, brass, zinc oxide for rubber and chemicals |
| Major miners | China, Peru, Australia, India, the United States |
Specifications as published by the exchange; they can change, so confirm on the exchange website before trading.
Trading hours
LME metals trade electronically on LMEselect roughly 01:00 to 19:00 London time, with open-outcry Ring sessions around midday London time. The 3-month contract is the usual benchmark.
Contract basics
LME special high grade zinc trades in 25-tonne lots priced in US dollars per tonne.
Quote unit
USD per tonne. Hours and specifications can change; always confirm on the exchange's website, especially around holidays.
Zinc FAQ
What moves the price of zinc?
Steel production and construction activity, especially in China. Mine supply and smelter treatment charges. Energy costs for smelters. LME and Shanghai exchange inventories.
When does zinc trade?
LME metals trade electronically on LMEselect roughly 01:00 to 19:00 London time, with open-outcry Ring sessions around midday London time. The 3-month contract is the usual benchmark.
What is the standard zinc contract?
LME special high grade zinc trades in 25-tonne lots priced in US dollars per tonne.
What is zinc mainly used for?
Galvanising steel to stop rust, followed by alloys such as brass and die-cast parts, and chemicals such as zinc oxide.
What are zinc treatment charges?
Fees miners pay smelters to process concentrate into metal. Low charges signal scarce mine supply.