Affecting factors of zinc price

This year, zinc prices jumped more than 75%, is the bulk of commodity markets in the best performance of the main metal.


There are two main reasons behind the staggering zinc price performance: First, zinc demand continues to grow, especially in Asia, despite China’s slowing economy. China is still a major contributor to this market, contributing about 50% of global zinc consumption. Surprisingly, the United States and the EU have also been found to have zinc demand growth. According to WoodMackenzie statistics, global zinc demand in 2015 increased by 3.2% over the same period in 2014, only 0.9%. Second, the zinc industry has closed two major mines this year, the Zinc Mine and the Lisheen Zinc Mine, both of which were members of the “Top 10 Zinc Deposits”. The closure of the two mines removed about 600,000 tonnes of metal from the market, as well as the cutbacks of Nystar shutting down Myra Falls, Campo Morado and several other zinc mines in Tennessee. Moreover, some of China’s small zinc mines are being closed due to environmental problems.


In addition to the closure of many of the existing capacity, the new zinc projects under development are relatively small in scale and can only provide a limited supply of new supplies to fill the supply gap.


Together, these factors have led to an increase in demand for zinc over supplies, which has kept the market in short supply and thus pushed up zinc prices consistently.


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