Zinc: An overview - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Zinc: An overview

Oct 6, 2008

Zinc is a moderately reactive bluish white metal that tarnishes in moist air, producing layer of carbonate. It is the fourth common metal in worldwide annual production trailing only iron, aluminium and copper. It is mainly used for galvanizing, which involves coating steel with zinc in order to guard it against corrosion. Galvanizing includes sheets, tubes and wires. Industry structure: The zinc industry is broadly divided into three types of producers:

  1. Miners who mine the lead zinc ore and produce zinc concentrate.
  2. Custom smelters who refine the zinc concentrate and produce the refined metal.
  3. Integrated players who mine the lead zinc ore from their captive mines and produce the metal through smelting and refining.

Zinc mining is carried out in nearly 50 countries. China, Australia and Peru are among the largest zinc mining countries in the world. While, the major custom smelting locations include Western Europe, South Korea, Japan, and China

Pricing structure: Prices of zinc are determined at the London Metal Exchange (LME). However, producers normally charge a regional premium, which is market driven. Custom smelters profitability is determined by the treatment charges (TC) rates, as the prices of zinc concentrate are equal to LME prices net of TC. Prices of finished zinc products are equal to LME plus premium. The TC rates are influenced by the demand and supply of zinc concentrate in the market, current and forecasted LME prices, mining rates and freight costs.

User industries: Zinc is fourth widely used metal in the world. It is used in various applications.

Galvanizing: Zinc is one of the best anti corrosion metals and thus is extensively used in construction, automobile, household appliances, steel furniture etc.

Zinc oxide: It is the most commonly used zinc compound and founds uses in vulcanization of rubber, ceramics, paints, animal feed, pharmaceuticals and photocopiers.

Die-castings: It is best material for die-casting and is used extensively in hardware, electrical equipment, and automotive and electronic components.

Rolled zinc: Zinc sheets are used in the construction industries for roofing, flashing, weathering applications. It is also used in graphic art to make plates and blocks as well as battery callouts and coinage.

Alloys: It is used in making alloys. Brass is an alloy of copper and zinc.

In the next article, we would discuss about the development of zinc industry in India and its current scenario.

Equitymaster requests your view! Post a comment on "Zinc: An overview". Click here!

  

More Views on News

5 Indian Companies Embracing Blockchain Technology (Views On News)

Nov 23, 2021

Blockchain adoption in India was slow in the past. Now, the technology is being well received.

CAREER POINT 2020-21 Annual Report Analysis (Annual Result Update)

Nov 22, 2021 | Updated on Nov 22, 2021

Here's an analysis of the annual report of CAREER POINT for 2020-21. It includes a full income statement, balance sheet and cash flow analysis of CAREER POINT. Also includes updates on the valuation of CAREER POINT.

ANTONY WASTE HANDLING 2020-21 Annual Report Analysis (Annual Result Update)

Nov 22, 2021 | Updated on Nov 22, 2021

Here's an analysis of the annual report of ANTONY WASTE HANDLING for 2020-21. It includes a full income statement, balance sheet and cash flow analysis of ANTONY WASTE HANDLING. Also includes updates on the valuation of ANTONY WASTE HANDLING.

Top Performing Sectors in 2021 (Views On News)

Aug 10, 2021

A look at this year's best performing sectors and what has helped them rally.

Nazara Technologies IPO: Should You Apply? (IPO)

Mar 17, 2021

Should you bet on this gaming company backed by ace investor Rakesh Jhunjhunwala?

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

India's Top 5 Monopoly Stocks to Watch Out for (Views On News)

Nov 30, 2021

These 5 companies dominate their sectors with a huge piece of the pie.

The Biggest Winners and Losers in India's Transition to Electric Vehicles (Profit Hunter)

Nov 26, 2021

How India's EV transition could be a major headwind for the incumbents.

7 Stocks that Mutual Funds Can't get Enough of (Views On News)

Dec 1, 2021

Come hell or high water, these are the top Indian stocks which mutual funds never leave.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

5-YR ANALYSIS

COMPARE COMPANY

MARKET STATS