Capital Market Highlights: Zinc

As world demand increases for consumer goods, automotives, and building and construction, there is higher demand for steel, and consequently, higher demand for zinc. Zinc is used principally for galvanizing steel for corrosion protection.

Zinc has outperformed all other base metals gaining 60.2% in 2016. Zinc is regaining losses from 2015, after dropping 25% last year due to oversupply. This rally for zinc is followed by global production cuts and short coverings that have taken into effect, as Glencore pledged to slash 500,000 tonnes of production going forward late in 2015, and many other majors have followed suit.