General Characteristics
|
Zinc is the fourth most widely used metal after steel,
aluminum and copper in the world. Due to its resistance to non-acidic
atmospheric corrosion zinc is instrumental in extending the life of
buildings, vehicles, ships and steel goods and structures of every kind.
Zinc is a bluish-white lustrous metal. It is normally covered with a white
coating on exposure to the atmosphere. Zinc dust is flammable when exposed
to heat and burns with a bluish-green flame. Zinc also exists in many
compounds. Zinc has a role in normal human growth, taste, and sperm
development, but exposure to high levels of zinc through inhalation,
ingestion, and dermal contact can cause adverse health effects.
Zinc is used for alloys, electroplating, metal spraying, electrical fuses,
batteries, rubber, paint, glue and matches. Zinc is registered as a
fungicide, herbicide, and rodenticide. The primary stationary sources of
zinc are electric services, petroleum refining, crude petroleum and natural
gas extraction, manufacturing of fabricated rubber products, manufacturing
of fabricated metal heating and plumbing products, and manufacturing of
inorganic chemicals. Indoor sources include infiltration of outdoor air,
smoking, cooking, and other indoor sources. The average indoor
concentration of zinc is normally slightly higher than the outdoor level.
Zinc occurs naturally in the earth's crust.
|
|
Domestic Scenario
|
- The Indian zinc
industry entered its transformation phase with the privatisation of
the largest zinc producer, Hindustan Zinc Ltd, in favour of the
Sterlite group in April 2002. The domestic zinc industry is now
completely under the private sector and is in the midst of a serious
expansion programme.
- By 2010, India is
expected to attain complete self-sufficiency in meeting its zinc
demand. Thereafter, the process of India becoming an important zinc
supplier to the world would be initiated, provided that another phase
of capacity expansion is effected.
- The country's zinc
demand, which stood at 3.5 lakh tonnes in 2003-04, is expected to rise
to 4 lakh tonnes in 2004-05, including imports 65,000 tonnes.
- Over the next
five-six years, zinc demand is likely to grow at 12-15 per cent
annually, against the global average of 5 per cent.
- Even if one assumes
that zinc demand grows by 10 per cent till 2010 and at slower 7 per
cent thereafter, India would require zinc capacity of 14 lakh tpa by
2020, in order to be self-reliant. The next round of large capacity
additions would, therefore, be warranted from 2008 onwards.
- Buoyancy in domestic
zinc demand primarily emanates from the boom in the steel industry,
given that over 70 per cent of zinc is used for galvanizing. The steel
industry has bright prospects with demand drivers being the
construction industry and exports. Other sources for demand would be
die-casting, guard rails for highways and imported-substituted zinc
alloys.
|
|
Global Scenario
|
Substitutes: Aluminum, steel, and plastics substitute
for galvanized sheet. Aluminum, plastics, and magnesium are major
competitors as diecasting materials. Plastic coatings, paint, and cadmium
and aluminum alloy coatings replace zinc for corrosion protection; aluminum
alloys are used in place of brass. Many elements are substitutes for zinc
in chemical, electronic, and pigment uses.
|
|
Factors Influencing Zinc Market
|
- Changes in inventory
level at LME wharehouses
- Economic growth rate
of major consuming countries
- Global growth and
demand in major consuming industries
- Prices of the
alternative metal(s)
- Participation of
funds
|
|
Factor influencing demand and supply
|
|
|
IST of Global Exchanges (Price Clues from Other
Major Global Exchanges)
|
LME: 5.30 PM to 10.30 PM
|
|