Zinc demand fundamentals remain robust across key end-use sectors. Galvanized steel, which accounts for over 50% of global zinc consumption, continues to see steady growth. Chinese galvanized sheet and strip production rose 3.2% year-on-year in May, reflecting strong construction and infrastructure-related demand.
In the United States, the Infrastructure Investment and Jobs Act continues to drive spending on bridges, highways, and water systems. These projects are highly galvanized steel-intensive, with typical bridge construction consuming 50-100 tonnes of zinc per project for corrosion protection.
India's infrastructure push is an emerging demand driver. The National Infrastructure Pipeline of $1.4 trillion includes extensive spending on power transmission towers, highway guardrails, and railway electrification — all large consumers of galvanized steel.
On the automotive side, zinc consumption for die-casting and corrosion protection remains stable despite the industry's shift to EVs. EVs still require zinc for galvanized body panels and chassis components, though in slightly lower volumes per vehicle than ICE vehicles.
The global zinc market is expected to record a demand growth of 1.5-2.0% in 2026, broadly in line with GDP growth in emerging economies.
Steady demand growth combined with supply constraints creates a supportive price environment. Buyers should focus on forward contracting for Q4 and Q1 2027, when seasonal inventory draws could push prices higher.