Zinc ZINC

Zinc is a traded commodity with many industrial and commercial applications. It is commonly extracted from underground and open pit mines and can also be sourced as a by-product of gold, silver or copper mining. While mining accounts for the majority of production, in the US, around 25% is derived through recycling.

The vast majority of zinc is used to galvanise steel and iron to prevent corrosion and rusting. It is also used to form strong metal alloys, such as brass, nickel and aluminium solder, as well as to create zinc oxide and zinc sulphide. Zinc has a long history of being traded on the London Metals Exchange; it first became available by contract in 1920. Its prices are affected by Chinese demand and supply, global stocks, US demand and input prices, such as the price of coal, electricity and crude oil.

Considered higher risk than many other commodities, zinc is still a relatively popular investment to help diversify your portfolio and lower risk. Due to its widespread use for industrial purposes, zinc prices can be somewhat volatile. The commodity can be traded in various ways, including through CFDs, which track the price of zinc as a spot.

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