Introduction
Zinc (chemical symbol - Zn) is a bluish white lustrous metal. It is normally covered with a white coating on exposure to the atmosphere.
Zinc is the fourth most common metal in use, after iron, aluminium and copper in terms of the metal’s annual production.
Zinc can be recycled indefinitely, without loss of its physical or chemical properties.
It is present in a wide variety of foods, and found particularly in association with protein foods.
Demand and Supply
There was a decrease of 3.5% in the global refined zinc output in 2012 over the previous year. This was mainly due to a reported 7.5% decrease in China’s output, which offset the increase witnessed by Mexico, Peru, United States, Japan and the Republic of Korea.
Similarly, the global refined zinc metal usage also decreased by 2.80%. This was primarily influenced by a decrease in demand from all major countries, except India and the Republic of Korea.
Global Scenario
The major refined zinc exporting countries are Belgium, Canada and the Republic of Korea, while the major refined zinc importing countries are USA, Germany and China in 2011.
In 2011, the Chinese imports of zinc contained in zinc concentrates declined by 34% to 821 KT, over the previous year. However, the nations net refined zinc metal imports increased by 68.5% to 509 KT, during the year 2011.
Indian Scenario
India's refined zinc production was 711,266 metric tonnes (MT) in 2012.
In India, the primary end use of zinc is in the galvanising and coating sectors, which currently account for an estimated 57% and 16% of the total production respectively.
Factors Influencing the Market
Zinc prices in India are fixed on the basis of rates that rule in the international spot market, and Indian Rupee and US Dollar exchange rates.
Economic events such as the national industrial growth, global financial crisis, recession and inflation affect metal prices.
Commodity-specific events such as the construction of new production facilities or processes, new uses or the discontinuance of historical uses, unexpected mine or plant closures (natural disaster, supply disruption, accident, strike, and so forth), or industry restructuring, all affect metal prices.
Trade policies set by the Government (implementation or suspension of taxes, penalties, and quotas) affect supply as they regulate (restricting or encouraging) material flow.
Geopolitical events involving governments or economic paradigms and armed conflict can cause major changes.
As societies develop, their demand for metal increases based on their current economic position, which could also be referred as ‘National Economic Growth Factor’.
