Scrap Zinc Prices in South Africa 2025: A Detailed Analysis

Zinc, a crucial non-ferrous metal widely used in galvanization, alloys, batteries, and construction materials, plays an essential role in both industrial applications and the global recycling market. The scrap zinc market, which includes recycled zinc from various sources such as industrial waste, automotive parts, and old batteries, is a key part of South Africa’s metal recycling industry. This comprehensive analysis will explore the factors affecting zinc prices in South Africa in 2025, examining global trends, historical price data, and forecasts for the future.



Global Zinc Market Trends

1. Global Demand for Zinc

Zinc is primarily used in the following industries:

  • Galvanization: Zinc’s most significant application is in galvanizing steel and iron to prevent corrosion. This process is crucial in industries such as automotive manufacturing, construction, and infrastructure development, where the demand for corrosion-resistant materials is high.

  • Batteries: Zinc is also used in the production of batteries, particularly in alkaline and zinc-carbon batteries. As the world moves towards renewable energy sources, zinc-based batteries like zinc-air and zinc-nickel are gaining popularity due to their environmental benefits and efficiency.

  • Alloys: Zinc is used to create alloys such as brass (copper-zinc alloy), which is important in the manufacturing of electronics, machinery, and various consumer goods.

  • Agriculture: Zinc compounds are essential for agricultural products, particularly in fertilizers, where zinc helps to promote plant growth and improve crop yield.

The demand for zinc is directly tied to the performance of industries such as automotive manufacturing, construction, electronics, and agriculture. Any growth in these sectors typically translates into higher zinc consumption.

2. Global Zinc Supply

The supply of zinc is largely controlled by mining operations and recycling industries. Zinc is primarily produced from zinc ores such as sphalerite, with the largest producers of zinc globally being countries like China, Australia, Peru, and India. South Africa also plays a role in the global zinc mining sector, though its production is not as large as that of leading producers.

  • Zinc Recycling: Recycling of zinc scrap, especially from sources like galvanizing plants, old vehicles, and industrial waste, contributes significantly to the global supply of zinc. According to the International Zinc Association, approximately 30-40% of the world’s zinc supply comes from recycled materials, making zinc one of the most recycled metals globally.

  • Zinc Concentrates and Refining: The refining of zinc concentrates to produce refined zinc metal is energy-intensive. Environmental concerns and the growing demand for sustainable production methods have made recycling more appealing as a means to meet zinc demand.

3. Price Forecasts

The global zinc market has experienced volatility over the years, with fluctuations driven by supply-demand imbalances, mining disruptions, and global economic factors. The price of zinc is also influenced by the performance of the US Dollar (USD), as zinc is traded globally in USD. As demand from key sectors continues to rise and recycling efforts increase, global zinc prices are projected to rise moderately in the next few years.

Industry analysts expect global zinc prices to average around USD 2,700 to USD 3,000 per ton in 2025, marking a gradual increase due to higher demand, especially from the construction and automotive sectors, combined with supply chain disruptions.

South Africa’s Zinc Industry Overview

1. Zinc Production and Recycling in South Africa

South Africa is a key player in the African metal market, and although it is not one of the largest global zinc producers, it is home to important mining and refining operations:

  • Mining Operations: South Africa is home to the Black Mountain Mine, one of the country's primary zinc mining operations. Additionally, zinc is produced as a by-product at lead and copper mines.

  • Zinc Refining: South Africa has established zinc refining plants, such as Exxaro’s Zinc Refinery, which process mined concentrates to produce refined zinc metal. These plants serve both the domestic market and export destinations.

  • Zinc Recycling: South Africa has a well-developed metal recycling industry, including a substantial recycling operation for zinc. Brass scrap, galvanized steel, and other zinc-containing products are collected, processed, and recycled, reducing the reliance on primary zinc production and contributing to more sustainable metal use.

2. Zinc’s Role in South Africa’s Metal Recycling Industry

Scrap zinc plays a vital role in South Africa’s recycling economy, with the following key sources of scrap zinc:

  • Galvanizing Scrap: This scrap originates from the coating of steel and iron with zinc to prevent rust. Galvanized steel is commonly used in construction, automotive, and infrastructure sectors, providing a steady supply of zinc scrap.

  • Automotive and Industrial Scrap: Old vehicles, batteries, and industrial equipment often contain significant amounts of zinc, which can be recycled for reuse in the manufacturing process.

  • Consumer Scrap: Zinc scrap is also sourced from end-of-life consumer goods, including electronics, plumbing fixtures, and appliances.

Recycling scrap zinc reduces environmental impact, lowers energy consumption, and creates economic opportunities, making it an essential part of the zinc supply chain in South Africa.

Key Factors Affecting Scrap Zinc Prices in South Africa

Several factors influence the price of scrap zinc in South Africa, including both global and domestic factors that shape the market dynamics.

1. Copper and Zinc Price Correlation

Zinc is often traded alongside other base metals, particularly copper, due to their similar uses in industrial applications. The prices of copper, lead, and zinc often correlate, with increases in copper prices leading to higher zinc prices due to the increased overall demand for non-ferrous metals.

  • Supply and Demand of Copper and Zinc: If the demand for copper increases in industries like construction or automotive, it could signal a corresponding increase in zinc prices, particularly as the two metals often coexist in various alloys like brass.

2. Global Zinc Prices

As a metal traded on international markets, South African scrap zinc prices are influenced by global price movements. When the global price of zinc rises due to increased demand in sectors like construction and automotive, South African scrap zinc prices tend to follow suit. Similarly, a decrease in global zinc prices can lead to lower prices for scrap zinc in South Africa.

  • Market Sentiment: Investor sentiment, as well as speculation in the commodities markets, also plays a role in the price fluctuation of zinc, further impacting local prices.

3. Exchange Rates and the South African Rand (ZAR)

The value of the South African Rand (ZAR) relative to the US Dollar (USD) has a significant impact on scrap zinc prices. Zinc is traded globally in USD, and fluctuations in the exchange rate can either raise or lower the domestic price of zinc:

  • Weaker ZAR: When the ZAR weakens against the USD, zinc exports become more attractive, leading to potential higher demand and higher scrap zinc prices in South Africa.
  • Stronger ZAR: A stronger Rand may reduce export competitiveness and decrease demand for scrap zinc, which can result in lower prices.

4. Supply Chain Disruptions and Mining Costs

Supply chain disruptions, whether due to geopolitical factors, trade restrictions, or environmental concerns, can significantly impact the availability of zinc and its scrap, influencing local prices. Mining costs also affect the price of primary zinc production, which in turn influences scrap zinc prices.

  • Mining and Refining Costs: Rising energy costs and environmental regulations affecting zinc production and refining processes could push up the cost of producing new zinc, indirectly increasing the price of scrap zinc.

5. Economic Conditions in South Africa

South Africa's economic performance directly affects industrial demand for zinc. Sectors such as construction, automotive, and manufacturing rely heavily on zinc, and any growth in these sectors will lead to increased demand for scrap zinc:

  • Construction Boom: Large-scale infrastructure projects and the demand for durable building materials contribute to higher demand for galvanized steel, which in turn drives up scrap zinc prices.
  • Automotive Growth: As the automotive industry grows, especially with a shift toward electric vehicles that require specialized components, the demand for zinc and zinc alloys will also rise.

6. Government Policies and Trade Agreements

Government policies that promote recycling, such as incentives for recycling and tariffs on imported materials, can influence the local supply and demand for zinc scrap. Furthermore, trade agreements and export restrictions on raw materials can impact the price of scrap zinc in South Africa:

  • Trade Restrictions and Tariffs: Any restrictions on the export of zinc scrap or tariffs on raw material imports could lead to price fluctuations in the South African market.
  • Environmental Policies: The South African government has made efforts to enhance sustainable production and recycling processes, which could increase the availability of recycled zinc and impact its price.

Historical Scrap Zinc Prices in South Africa

While specific historical data for scrap zinc prices in South Africa is not readily available, we can observe trends in global zinc prices and correlate them with local market conditions.

1. 2010-2020 Zinc Prices

  • 2010-2014: Zinc prices experienced steady growth as the global economy recovered from the 2008 financial crisis. Increased demand for galvanized steel in construction and infrastructure projects contributed to higher zinc prices.

  • 2015-2017: Zinc prices saw a dramatic rise during this period, driven by global supply constraints, particularly in major zinc-producing countries. South Africa’s zinc prices followed the global trend, reaching highs during this period.

  • 2018-2020: Zinc prices were relatively stable, with moderate fluctuations as global supply and demand for zinc balanced out. However, a renewed demand for zinc from construction and industrial sectors pushed prices upward toward the end of this period.

2. 2021-2024 Zinc Prices

  • 2021-2022: The price of zinc surged due to increased demand from construction, automotive, and electronics sectors. Supply chain disruptions and geopolitical factors also contributed to higher prices for zinc in South Africa.

  • 2023-2024: Prices remained elevated, driven by strong demand, particularly in the galvanization and alloy sectors. The global recovery from the pandemic and continued infrastructure development led to sustained high prices.

Scrap Zinc Price Projections for 2025

1. Price Forecasts

Looking ahead to 2025, analysts predict that scrap zinc prices in South Africa will increase gradually, driven by strong demand in key sectors like construction and automotive manufacturing. Prices are expected to average between ZAR 25,000 and ZAR 30,000 per ton by 2025, representing a 10-15% increase over 2024 levels.

  • Higher Demand from Industrial Sectors: Increased demand from industries such as automotive, construction, and electronics will continue to drive scrap zinc prices upward.

  • Supply Constraints and Mining Costs: Rising mining costs and global supply constraints could contribute to higher prices for both primary and scrap zinc.

2. Factors Affecting Projections

  • Economic Conditions in South Africa: Continued economic growth in the manufacturing and construction sectors will likely increase demand for zinc.
  • Global Zinc Market Trends: Price fluctuations in the international zinc market, along with geopolitical developments, will influence South African scrap zinc prices.

To sum up

The South African scrap zinc market is poised for steady growth in 2025, driven by both local industrial demand and global trends. Fluctuations in zinc prices will be influenced by factors such as supply and demand dynamics, mining costs, exchange rates, and global market conditions. Stakeholders in the South African zinc industry should monitor these factors closely to navigate price fluctuations and ensure a competitive edge in the global market.

Key Takeaways:

  • Scrap zinc prices in South Africa are expected to rise moderately in 2025, averaging between ZAR 25,000 and ZAR 30,000 per ton.
  • Economic growth in sectors like construction, automotive, and electronics will continue to push up demand for zinc and scrap zinc.
  • Global zinc market trends, including mining costs, recycling efforts, and geopolitical factors, will impact local scrap zinc prices.


Copyright Scrap Metal Prices South Africa