In brief
- About half of the zinc consumed worldwide is used to galvanise steel; the rest goes into die-casting alloys (zamak), brass, zinc oxide and chemicals.
- In 2025 mines produced about 13 million tonnes of contained zinc; China about 4.1 million, followed by Peru and Australia (USGS).
- The world benchmark is the LME Zinc contract (code ZS): 99.995% Special High Grade zinc, 25-tonne lots, prompt dates out to 63 months.
- The price reflects demand for galvanised steel, smelters' energy costs and the treatment charges paid by mines to smelters.
- In the FT Mercati archive the highest official price since 1989 is 4,619.5 dollars per tonne, on 24 November 2006; in 2022 the price climbed back to 4,530 dollars.
What zinc is and how it is made
Zinc is a bluish-grey metal that corrodes slowly and, above all, sacrifices itself in place of steel: a layer of zinc on sheet oxidises before the iron does and protects it for decades. It is also an excellent foundry metal, because it melts at a low temperature and fills moulds well.
It is extracted mainly from zinc sulphide ores, often together with lead and silver. The ore is concentrated at the mine and sold to smelters, which turn it into metal mostly by roasting, leaching and electrolysis. Concentrate is paid for at the metal price minus a treatment charge: that is the smelter's fee, and its level shows how much concentrate there is relative to refining capacity.
Who produces and who uses zinc
According to the US Geological Survey's Mineral Commodity Summaries 2026, mines worldwide produced about 13 million tonnes of contained zinc in 2025. China is the largest producer, with about 4.1 million, followed by Peru (1.5), Australia (1.1), India, Mexico and the United States.
For 2025 the International Lead and Zinc Study Group, cited by the USGS, estimated world refined zinc production at 13.8 million tonnes and consumption at 13.7 million (rounded figures): a small surplus of about 85,000 tonnes, due mainly to new refining capacity in China.
Galvanising steel accounts for about half of world consumption: sheet for cars and household appliances, sections and structures for construction, poles, crash barriers. The rest goes into die-casting alloys (zamak, zinc-based with a little aluminium), into brass together with copper, into zinc oxide for rubber, ceramics and pharmaceuticals, into zinc sheet for roofing and gutters, and into chemicals.
The LME zinc contract
The world reference price is set on the London Metal Exchange, on the LME Zinc contract. What is traded is a zinc precisely defined by the exchange, Special High Grade (SHG), with quality, shape, lot size, prompt dates and delivery rules the same for everyone.
The main terms of the contract:
| Contract code | ZS |
|---|---|
| Metal | Special High Grade (SHG) zinc, minimum purity 99.995% |
| Quality | conforming to one of the standards BS EN 1179:2003 (grade 99.995%), ISO 752:2004 (ZN-1), ASTM B6-23 (LME grade) or GB/T 470-2008 (Zn99.995) |
| Shape | ingots and jumbos (large-format blocks) |
| Lot size | 25 tonnes; each warrant 25 t with a tolerance of ±2% |
| Price quotation | US dollars per tonne; also clearable in yen, sterling and euro |
| Prompt dates | daily out to 3 months, weekly from 3 to 6 months, monthly from 7 to 63 months |
| Minimum price fluctuation | 0.50 dollars per tonne on the Ring and LMEselect; 0.01 dollars for carries and on the inter-office market |
| Last trading day | until the close of the first Ring on the day before the prompt date |
| Settlement | physical delivery: warrants for metal of LME-approved brands stored in approved warehouses |
| Trading venues | Ring (open outcry), LMEselect (electronic) and the inter-office telephone market |
LME zinc is a refined metal of very high purity: zamak, the zinc contained in brass and zinc for hot-dip galvanising are priced on the LME price, with premiums, alloying costs and processing added on top. Monthly prompt dates run to just over five years, against ten for copper and aluminium.
Source: LME, LME Zinc contract specifications, read on 29 September 2026.
What drives the zinc price
Galvanised steel. Zinc demand follows demand for galvanised sheet and structures, and therefore construction, infrastructure, cars and household appliances, with China as the world's largest consumer.
Mines and treatment charges. New mines, closures of exhausted mines and disruptions change the availability of concentrate. When concentrate is scarce, treatment charges fall and smelters work on thin margins; when it is plentiful, they rise.
Energy. Electrolytic refining consumes a lot of electricity: in 2021-2022 soaring energy costs pushed several European smelters to cut or halt production, and the price rose.
Stocks, the dollar and premiums. Stocks in LME warehouses and the spread between Cash and three-month show how much metal is available; a strong dollar weighs on the price; regional premiums, such as the North American premium, which rose by 6% in 2025 (USGS), come on top of the London price.
The recent history of the zinc price
The official LME price (Official Cash, ask side) at key moments of the last twenty years, from the FT Mercati archive, in dollars per tonne:
Zinc, zamak and brass: the price for alloy buyers
Buyers of zamak for die-casting pay for an alloy made almost entirely of zinc, with small amounts of aluminium and other metals: its price follows the LME zinc price, plus the premium, the alloying metals and casting into ingots. Buyers of brass, instead, pay for a copper-zinc alloy whose price depends mainly on copper.
For the Italian market FT Mercati publishes the Milan Indexes for zinc and for the brass bases: euro references that include market premiums and continue the historical quotations of the Milan market.
Zinc on FT Mercati
Every day we publish on the site the official LME zinc price of the previous session, in dollars and euros, with a chart of recent sessions. Under LME rules, the price of the current session is reserved for users of authorised data vendors.
FT Mercati subscribers follow Cash, three-month and the other prompt dates, closing prices, stocks in LME warehouses and the Milan Indexes for zinc and brass in real time, with history and alerts on the web and in the app. The service can be tried for free.
Frequently asked questions
What is the zinc price today?
On the FT Mercati site you will find, every day, the official LME zinc price of the previous session, in dollars and euros per tonne. The price of the current session, in real time, is reserved for subscribers: the LME grants it only to users of authorised data vendors.
What is zinc used for?
Above all to protect steel from corrosion: about half of the zinc consumed worldwide is used for galvanising. The rest goes into die-casting alloys (zamak), brass, zinc oxide, roofing sheet and chemicals.
What is SHG zinc?
Special High Grade: zinc with a minimum purity of 99.995%, conforming to standards such as ISO 752 (ZN-1) or BS EN 1179. It is the grade deliverable on the LME contract, in ingots or jumbo blocks.
How much does an LME zinc lot weigh?
25 tonnes, with a tolerance of ±2% on the warrant weight. Prompt dates run daily out to three months, weekly out to six months and monthly out to 63 months.
Does the zamak price follow the zinc price?
Largely yes, because zamak is almost entirely zinc: the premium, alloying metals such as aluminium and processing are added to the LME zinc price. The price of brass, instead, depends mainly on copper.
What was the highest zinc price?
In the FT Mercati archive of official LME prices, which starts in 1989, the highest value is 4,619.5 dollars per tonne, on 24 November 2006. On 19 April 2022 the price climbed back to 4,530 dollars.
Sources
References for this guide. Historical prices come from the FT Mercati archive of official LME prices (Official Cash, ask side).
- LME — LME Zinc, contract specifications
- USGS — Mineral Commodity Summaries 2026: Zinc
- ILZSG — The World Zinc Factbook
This guide is market information, not financial or investment advice: for your company's decisions, consult your advisors.