Zinc Commodity Trading

Did you know that Zinc is the fourth most common metal in use?

Zinc is the 24th most abundant element on earth and has been used for thousands of years particularly in brass which is an alloy of copper and zinc. It was recognized in India as a new metal in 1374. Early use was limited mainly to making brass objects such as weapons, ornaments, coins and mirrors.

Currently Zinc is the fourth most common metal in use, trailing only iron, aluminium, and copper with an annual production of about 12 million tonnes. It is mainly used to galvanize other metals to prevent them from rusting.

Zinc's light-weight and corrosion-resistant properties mean it is often used in die-casting alloys, castings, brass products, sheeting products as well as in chemicals, medicine, paints and batteries

About 50% of total Zinc consumption is attributed to galvanizing.Approximately 17% goes into the production of zinc base alloys, mainly to supply the die casting industry and 17% to produce brass and bronze. Significant amounts are also utilized in rolled zinc applications including roofing, gutters and down-pipes. The remainder is consumed in compounds such as zinc oxide and zinc sulfate.

Zinc price depends upon various factors, including industrial growth, global economy, trade policies and geopolitical events. Besides, events like growth in automobile sector, construction of new infrastructure, discontinuance of historical uses, supply disruption, etc. also affect Zinc prices.

The metal is traded as a commodity mainly on London Metal Exchange (LME), Shanghai Futures Exchange (SHFE) and Multi Commodity Exchange of India (MCX), LME is used as a benchmark across the globe. Zinc is also one of the highest traded commodity on Indian commodity bourses.

What makes Zinc a wise investment?

Zinc is the fourth most used metal, because of its effectiveness in protecting metals against corrosion by galvanizing
The metals ability to die cast complicated components makes zinc indispensable in a multitude of industry and household products
Main application areas include construction, transport, consumer goods and electrical appliances and general engineering
Going forward Zinc usage is poised to rise further.

Why is Zinc a wise investment for an Indian trader?

The diverse uses of Zinc make the metal significant for the progress of Steel, transport, and construction industry.
China is the top producer and consumer of Zinc. India is fourth largest consumer of Zinc after US and South Korea.
With growing urbanization and industrialization in both China and India, the demand is expected to rise even further.
The developing countries are investing significant amounts in infrastructure sector boosting demand for Zinc. Also growing automobile industry is expected to keep demand for the metal higher.
MCX Zinc price can be used as reference for Indian traders. As the commodities market grows and per-capita income rises, demand for industrial metals will remain higher.

How can Kotak Commodity help me invest in Zinc?

The Kotak Commodity Gateway Account will give you access to research and trading facilities to conduct Zinc trading in India. While SMS alerts and Call & Trade will provide you regular updates on Zinc prices in India, our expert research reports will help you make informed decisions. Our brokerage rates are attractive. The best part is that our Gateway is a lifetime free trading account!

To learn more about Kotak Commodity Gateway Account, please click here.
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