There are a number of factors that can influence the zinc production cost market trends and dynamics, including the end-use, application, process, and region. This article discusses the key takeaways, along with an analysis of growth opportunities in different end-use, application, process, and regions.
Analysis of growth opportunities in different end-use, application, process, and regions for the zinc market
The global zinc market is expected to see significant growth over the next few years. The industry is mainly driven by the growing construction, infrastructure, and building and construction industries in emerging countries. Agricultural zinc markets also have significant potential.
Zinc is used to protect iron and steel from rust, and is a major component of galvanizing. In addition, zinc is also used for a variety of applications. It can be used in paints & coatings, and as a coating on metal parts.
A number of zinc companies are leveraging integration opportunities across the value chain to help ensure competitiveness. This includes the development of innovative products & technologies. These companies also seek to expand manufacturing facilities to support growing demand.
Increasing automobile production in Asia-Pacific is driving the regional zinc market. Zinc-coated metal alloys are also used to strengthen modern infrastructure. Additionally, the rapid urbanization of developing nations has led to an increase in building and construction activities.
Increased taxation on energy production has put a dent on profit margins. Also, manufacturers are burdened with the increased cost of raw materials. However, technological advancements are opening up new supplies.
Another factor boosting the zinc market is the increasing need for niche applications. These include electric vehicles (EVs), power grid storage, and smartphones.
Agricultural zinc markets are also expected to experience growth in the near future. The use of fertilizers in agricultural practices will create lucrative opportunities for zinc production.
Other factors influencing the zinc market are the rapid increase in population and industrialization in emerging economies. More than 60 percent of the world’s population is considered to be at risk of zinc deficiency.
The Russian Federation’s invasion of Ukraine has had a significant impact on global commodity markets. As a result, prices for hydrocarbons have risen dramatically. Energy security mechanisms are being developed to ensure global supply and pricing stability.
Lead to zinc ratio projected to increase until 2022
In terms of lead and zinc, Chinese production is the elephant in the room. However, there are other factors to consider. Lead and zinc have long been important industrial materials. Its uses include metal galvanizing and lead acid batteries. Zinc can also be used for a host of other applications, including a number of chemicals and even in the form of alloys. Aside from its use in manufacturing, lead is also a key component in a number of other products and industries. As such, mining companies have a lot of decisions to make in order to maintain an economically viable operation. The following is a roundup of some of the more notable facets of the industry.
Aside from the obvious, the most notable achievement of a Chinese production drop would be the fact that the country’s abyssal lead and zinc supply is now only about one-fifth of the previous level. This means that the country is no longer the world’s largest producer of these important materials. For the record, the teeming nation produced just 46% of the world’s lead and 36% of its zinc last year. And, while this number is still low, it is still a significant decrease from the highs of 2013. Nonetheless, the aforementioned drop still presents a challenge for the lead and zinc industry.
Having said that, the best news is that the country can still boast of a highly advanced lead and zinc industry, as evidenced by the number of technologically advanced companies in the field. Although China is currently a world leader in zinc and lead, its output may be on the decline for some time. Despite this, the country is expected to play a major role in primary lead mining for the foreseeable future.
Global zinc oxide market attained a value of USD 3.93 billion in 2020
Zinc Oxide (ZnO) is a white pigment originating naturally from the mineral zincite. It is used as an additive in numerous products. ZnO also possesses properties such as corrosion inhibition, stain blocking support, UV protection, and water resistance.
ZnO has applications in different end use industries including rubber, ceramics, and pharmaceuticals. The demand for these products is increasing. Moreover, increasing population and growing urbanization are expected to drive the market.
Rubber is the most important application for Zinc Oxide. This is because the industry uses vulcanized rubber in various products like tires, body sealing systems, adhesives, and molded parts.
Electronics is another major driver of the market. This is because the industry is rapidly expanding due to the increasing demand for smartphones, voice recognition technologies, and artificial intelligence. Consequently, there is a high demand for zinc oxide in this sector. In addition, rising innovation is also contributing to the growth of this industry.
The Asia Pacific region dominates the global Zinc Oxide market. Countries such as India, China, Thailand, Indonesia, and Southeast Asian countries contribute a major share to the Asia Pacific Zinc Oxide market. Increasing automotive demand in China and India is one of the primary factors driving the regional market.
Europe is also an important market for Zinc Oxide. Among the European countries, Germany is the largest contributor to the market. Hence, it is also expected that the region will maintain its leading position during the forecast period.
A number of companies are involved in the production of Zinc Oxide. Some of them are Rubamin, EverZinc LLC, BASF SE, Pan-Continental Chemical Co., and Yongchang Zinc Industry Co., Ltd. These companies are investing a lot in the development of their product portfolio.
Asia Pacific zinc oxide market is projected to reach USD 5.6 billion by 2026
Asia Pacific is the largest market for zinc oxide, owing to its increasing demand in the automotive industry. The region is also projected to contribute a significant share in the global market in the coming years.
Moreover, growing demand for electronic items is also expected to drive the regional market. In addition, rising investments in research and development will fuel market growth. However, the emergence of government regulations is expected to hamper market growth in the future.
China is the major exporter of zinc oxide in the Asia Pacific region. Other major exporters are Thailand and Taiwan. Zinc oxide is used as an additive in a wide range of products.
Increasing use of zinc chemical in the automotive, construction, and agriculture sectors is expected to drive market growth. In addition, the demand for electronic products in Asia Pacific is also expected to boost market growth.
Among other factors, rising investment in the research and development sector is expected to increase the demand for zinc oxide in the coming years. Additionally, increased spending capacity is bolstered by a rapidly growing population.
Rubber is one of the most important application areas of zinc oxide. It is used in the production of tyres and automobiles. This segment is expected to witness the highest growth rate in the near future.
Similarly, the use of zinc oxide in ceramics is expected to contribute to market growth. However, a new rubber standard has hampered the growth of this industry.
In addition, the automotive aftermarket is also expected to grow in the future. Considering this, the market is likely to achieve market value of USD 9.962 million in 2021.
Further, the rise in the automobile sales is expected to increase tire demand worldwide. On the other hand, the electronics industry is also growing fast due to the increasing demand for smartphones. Hence, the electronic segment is anticipated to overtake the rubber segment in the next few years.
The zinc production cost market has its share of challenges and opportunities. However, one thing’s for sure: growth is on the horizon. Increasing demand for zinc in the infrastructure sector will drive the industry. Several niche applications also offer the prospect of substantial growth.
The zinc industry is a vast and diverse one. Major players include Bolden, Nexa Resources, Shaanxi Nonferrous Metals, and Korea Zinc Group. These companies are focusing on improving manufacturing facilities and enhancing the customer base.
The market for zinc is expected to expand at a CAGR of 4.4% between 2021 and 2027. Besides growing in volume, the supply and demand balance are shifting to meet rising demand. This could result in considerable price volatility over the coming years.
Technology innovation can be an important driver for the market. One technology in particular can unlock a sizable new supply, thus reducing costs and increasing productivity. Another is the ability to recover metal from waste streams.
Moreover, governments can play a role in promoting technology and innovation at all levels of the value chain. For instance, a policy could fund research into new recycling techniques or sorting mechanisms.
In addition, innovations in technology can reduce costs and enable material substitution. Likewise, policies can incentivize recycling of products at their end of life.
Similarly, measures can be taken to increase market transparency, such as periodic market assessments. Furthermore, measures can be taken to enhance the resilience of supply chains, such as stress-testing, regular market assessments, and encouraging material substitution. Lastly, policies can be implemented to help improve the market’s efficiency.
When it comes to zinc production cost, the competition for the top spot is fierce. In order to stay competitive, companies must devise innovative products and technologies.