Zinc Prices Rise 60%!
Recent research carried out by our purchasing team here at BS Fixings has confirmed that Zinc prices have risen by just over 60% in one year.
The recent low for the trade price of Zinc was $1,920 per Ton and was posted around the 27th of May 2020. On the 2nd of June this year, (2021), prices topped out at $3,078 per Ton. This is an increase of $1,920 per Ton or just over 60%.
The price of zinc is determined mainly by traditional supply and demand economics of emerging and established markets as well as the input prices and cost of production. Sharp rises above the general rate of inflation as we have seen over the previous 12 months are mainly driven by supply and demand shifts rather than an increase in production costs. Zinc can be traded on the London Metal Exchange and the Shanghai Metal Exchange and traders can also have an influence on price as it is traded as a commodity and investment.
Zinc, chemical symbol Zn, which was discovered by a German chemist Sigismund Marggraf in its elemental form in 1746, is a corrosion resistant metal with a blue tint to its white appearance and is often used to galvanise iron and steel to extend the life of the base metal by reducing its susceptibility to corrosion. Demand for brass can also push up Zinc prices as brass is a zinc alloy.
The cost of Zinc is important to us here at BS Fixings as it is used to galvanise and sherardise a range of products we sell. Both processes are used to coat steel or iron with zinc to create galvanised or sherardised products such as our Galvanised Steel Self Adhesive Insulation Pins and Galvanised Tying Wire. The main difference between galvanising and sherardising is how the zinc is attached/coated to the base steel material. Whilst they both require high temperatures in the process, sherardising uses a rotating drum to vaporise the zinc which then clings to the steel, whilst galvanising involves the steel being dipped in a bath containing the zinc.
We are aware of the current metal price volatility and our purchasing team are making special efforts to ensure we continue to buy the right products, at the right price, and pass these savings onto our customers.
If you have any more questions about zinc, galvanised or sherardised products, please do not hesitate to get in touch with a member of our specialist team.