For a better experience, Read this story in our App
TO ENJOY ADDITIONAL BENEFITS
Connect With Us
Get BusinessLine apps on
With forecasts indicating a growing demand for zinc in sectors such as steel, automotive, and battery technology, coupled with a projected domestic consumption increase, India’s zinc market is positioned for substantial growth. | Photo Credit:
The ongoing tariff wars and economic turbulence will help domestic zinc producers, as the user industry, including global steel and auto manufacturers, is increasingly looking to source the metal from India.
India’s importance as a metal exporter could receive a further boost, as global producers of the metal—such as Nyrstar NV and Teck Resources—are slashing output by 20-25 per cent in this calendar year.
Exports from China have become more expensive due to tariff overhang, production cuts, rising operational costs, and stringent environmental regulations.
In terms of its future expansion plan, Korea Zinc posted a net loss in the fourth quarter of last year, the first ever in its 50-year history.
These developments have positioned India as a key alternative hub for sourcing zinc, a critical metal extensively used by the steel, automobile, battery, and construction industries, among others.
Being the fourth-largest producer, India plays a significant role in the global zinc market.
Ambareesh Baliga, an independent analyst, said zinc is primarily used in galvanising, which increases the life of steel products multi-fold.
The demand will also emerge from fast emerging Zinc-Ion technology for power storage solutions.
In fact, a forecast of surplus output for 2024 ended up with a deficit.
“I will not be surprised if a similar trend follows in FY25 too which could push up the price,” he added.
Due to declining zinc ore grades, zinc production from Canada-based Teck Resources’ Red Dog mine in Alaska is expected to be slashed to 430,000–470,000 tonnes this year from 555,600 tonnes recorded in 2024. Similarly, Belgium-based Nyrstar has planned a 25 per cent cut in output in Australia.
Trafigura has already cut production by a quarter at its zinc smelter in Australia.
Demand for refined zinc consumption is expected to grow by 2.5 per cent in 2025 and 2.6 per cent in 2026, as per Wood Mackenzie, a leading global data and analytics solutions provider.
Global zinc demand is projected to rise steadily through 2026, driven by European manufacturing recovery despite US market headwinds from steel and aluminium tariffs.
India stands to gain from global zinc supply constraints, with domestic demand projected to grow at 6.4 per cent in 2025 and 7 per cent in 2026, it said.
According to the International Zinc Association, India’s zinc consumption is estimated to increase to over 2 million tonnes in the next 10 years.
The safeguard duty on steel imports could serve as a tailwind for domestic production, indirectly benefiting Indian zinc producers, including Hindustan Zinc, which commands over 75 per cent of the Indian market.
Published on April 15, 2025
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.