INTRODUCTION

Zinc is a bluish white lustrous metal. It is covered with a

white coating on exposure to the atmosphere.

Zinc is the fourth most common metal in use, after iron,

aluminum and copper in terms of the metals annual
production.

Zinc can be recycled, without loss of its physical or

chemical properties.

HISTORY

Zinc was known to the Romans but rarely used.

It was first recognized as a metal in India, zinc smelter at

Zawar, in Rajasthan, it was refined during the period 1100 to
the 1500 BC.

Zinc refining in China was carried out on a large scale in

1500BC.

It was identified as an element in 1746 and the name is

derived from the German, it was discovered by Andreas
Marggraf.

ZINC APPLICATIONS

zinc is used to galvanize other metals such as steel or iron

to prevent corrosion.

zinc is used to produce die-castings in automobiles,

electrical and hardware industries.

Zinc oxide is used in the manufacture of paints, rubber,

cosmetics, pharmaceuticals, plastics, inks, soaps, batteries,
textiles and electrical equipment.

Zinc sulfide is used fluorescent lights.

zinc dust used in the manufacturing of bleaches for the

textile and paper industries.

Miscellaneous Uses-Explosives, Fireworks.

WORLDS PRODUCTION AND

CONSUMPTION

CONTINUED.

There was a decrease of 3.5% in the global zinc output in

2012.This was mainly due to a reported 7.5% decrease in
Chinas output, which offset the increase witnessed by
Mexico, Peru, United States, Japan and the Republic of
Korea.

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

GLOBAL EXCHANGE
Exchange

Product

Lot Size

IST

LME

Zinc
Zinc mini

25MT
5MT

6:30 to 00:30 *
17:10 to
22:40**

Shanghai
Futures
Exchange
(SHFE)

Zinc

5MT

6.30 to 9:00
11:30 to 13:30

MCX

Zinc
Zinc mini

5MT
1MT

10:00 to 23:30
( MondayFriday)
10:00 to 14:00
( Saturday)

Market influencing factors:

Level of stocks with London Metal Exchange.

Fluctuation in the world demand for zinc.
Growth rate of the zinc producing countries.
Changes in the prices of the other substitute metals.

Major trading centers of zinc:

The largest zinc market in the world is the London Metal

Exchange.
Zinc is also traded in the Indian commodity exchanges
like Multi Commodity Exchange of India, National
Commodity and Derivatives Exchange of
India and National Multi Commodity Exchange of India.

WORLDWIDE SUPPLY AND DEMAND OF ZINC

Zinc Production and Reserves

Country
United States

Production Reserves
720

12,000

1,450

53,000

Bolivia

430

6,000

Canada

670

6,000

China

3,500

42,000

India

750

11,000

Ireland

350

2,000

Kazakhstan

480

16,000

Mexico

550

15,000

Peru

1,520

23,000

Other Countries

1,580

62,000

Total(rounded)

12,000

250,000

Australia

Data is in thousand metric tons. Data

from USGS Mineral Commodity
Summary, January 2011.

GLOBAL DEMAND AND SUPPLY

OUTLOOK

CONTINUED..
Demand:
Global zinc demand in 2013 was 12.971 million tonnes,
4.7% increased in 2012, Around 70% of the 584,000tonnes increase came from China, with consumption in
the rest of the world up around 180,000 tonnes.
Demand climbed around 3.4% in the US to 935,000
tonnes, and 4% in Japan at 498,000 tonnes.
Supply:
The zinc market was in deficit of 68,000 tonnes in
2013, with January this year in a deficit of 60,700
tonnes.
In 2014, we are looking for an increase in production
of some 560,000 tonnes

CHINESE TRADE

Demand in China climbed 7.6% in 2013 to

5.748 million tonnes; with Chinas refined
production at 5.1 million tonnes, this implies
a supply deficit of some 648,000 tonnes.
China consumes 45% of global zinc, Western
Europe 17%, the US 7% and Japan 4%.

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 galvanizing

and coating sectors, which currently account for an
estimated 57% and 16% of the total production respectively.

Market capitalization: The Zinc production has strong

growth in the country. In 2007 the Zinc Production stood at
around 4% in the world. In 2004 the zinc production
increased from 265,000 tonnes to 458,000 tonnes.

INDIA RANKS 4TH IN

PRODUCTION OF ZINC

Zinc production in India was in the hands of the government

initially as all the operations in India relating to the metal
were in the hands of a public sector company Hindustan
Zinc Limited.

In April 2002,this company was privatized in favor of the

Sterlite group.

The current Indian demand for zinc stands at around 3.5

lakh tons that is fulfilled with the help of domestic production
and imports.

About 70% of the Indian demand comes from the

galvanizing sector.

LME STOCK

LME zinc stocks fell to a low of 751,975 tonnes in the first

quarter from 931,175 tonnes at the end of 2007.

The drawdown was thought to be partially due to metal

moving to China to act as a collateral.

MCX AND LMX ZINC PRICE

CORRELATION

ZINC FORWARD CURVE

CURRENT ZINC PRICE IN MCX

TRADED CONTRACTS FROM

2010 TO 2014

IN THE YEAR 2014

QUANTITY OF ZINC TRADED

VALUE OF ZINC