Zinc Ingots
Zinc ingots are produced from zinc concentrates through roasting, leaching, and electrolysis. Over half of global zinc production is used for galvanizing steel to prevent corrosion. The remainder goes into alloys (brass, die-casting), chemicals, and battery production. LME SHG (Special High Grade, 99.995%) is the benchmark.
Zinc Ingots at a Glance
What Moves Zinc Ingots Pricing
Zinc trades off LME 3-month plus regional premiums (Antwerp, Singapore, US). Galvanizing demand (rebar, structural steel, auto) is the dominant end-use — about 60% of zinc consumption. TC/RC (treatment charges) on zinc concentrate signal smelter margins; when TCs collapse, smelters cut output and refined zinc tightens. China is both the largest producer and consumer; export tax adjustments swing global flows materially.
How Zinc Ingots Cargoes Are Priced and Settled
SHG (Special High Grade, 99.995% Zn) is the LME spec; HG (99.95%) trades at a discount. Cargoes are 25-tonne containerized or 500-tonne bulk parcels. Pricing is LME M+1 average plus regional premium with monthly QP. Annual contracts typically negotiate premium in October-November of prior year.
Zinc Ingots Specifications and Dispute Practice
Disputes mostly involve cadmium content (>5 ppm rejection), iron, and lead in low-purity grades. Physical issues like surface dross, cracks, and pinholes become buyer complaints at galvanizing lines. LME-approved brands command full premium; off-warrant material discounts $30-80/tonne.
Where Zinc Ingots Comes From and Where It Goes
Top exporters: South Korea (Korea Zinc), Australia (Mount Isa), Canada (Trail), Peru, Mexico, Kazakhstan. Top importers: US, India, Turkey, Italy, Belgium (Antwerp transhipment). China is largely self-sufficient in refined zinc but imports concentrate from Australia and Peru.
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