Zinc & Nickel Market Outlook: Key Trends for 2026

Zinc is the fourth most-consumed metal globally (after iron, aluminum, and copper). Key demand sectors:

• Galvanizing (60%): Coating steel to prevent corrosion. Essential for construction and infrastructure
• Alloys (15%): Brass (copper-zinc), die casting for automotive parts
• Chemicals (10%): Rubber vulcanization, pharmaceuticals, fertilizers
• Batteries (8%): Zinc-air and zinc-carbon batteries
• Other (7%): Rolled zinc for roofing, coins, and galvanic anodes

Global zinc consumption: ~14 million tonnes annually. China accounts for 50%+ of global demand.

Nickel demand is undergoing a structural shift:

Traditional Demand:

• Stainless steel: 70% of nickel demand (flat growth)
• Alloys: 10% (aerospace, defense, marine)
• Plating: 7% (decorative and functional coatings)

Growth Demand:

• EV batteries: 8% and growing at 25%+ annually
• Energy storage systems: Emerging demand source

Global nickel consumption: ~3.3 million tonnes annually. Battery demand is expected to reach 30% of total by 2030.

The zinc market is expected to remain relatively balanced in 2026:

Supply: New mine capacity coming online in Australia and India
Demand: Steady 2-3% growth driven by construction and infrastructure
Inventories: LME stocks gradually rebuilding from 2024 lows

Price Forecast: $2,600-$3,000/t

Bull case: Infrastructure spending boom and zinc mine disruptions push prices above $3,000
Bear case: Chinese economic slowdown dampens galvanizing demand, pushing prices to $2,400

Nickel faces conflicting pressures:

Bearish Factors:

• Indonesian supply growth (50%+ of global production)
• LFP battery chemistry gaining market share (no nickel content)
• Class 2 (NPI) oversupply depressing overall nickel sentiment

Bullish Factors:

• Class 1 (battery-grade) supply deficit
• EV battery demand growing 25%+ annually
• ESG concerns about Indonesian mining practices

Price Forecast: $14,000-$18,000/t
The key variable is whether Class 1 nickel supply can keep pace with battery demand.

Both metals offer opportunities for scrap recyclers:

Zinc Scrap:
- Clean zinc scrap: 85-90% of LME
- Zinc dross: 50-65% of LME
- Die cast zinc: 80-85% of LME

Nickel Scrap:
- Clean nickel scrap: 90-95% of LME
- Stainless steel scrap (304): Contains 8% nickel, priced accordingly
- Nickel alloy scrap: Premium pricing for specific grades (Inconel, Monel)

Nickel-containing alloy scrap is particularly lucrative, with specialized grades trading at significant premiums to base nickel prices.

Approaches for zinc and nickel exposure:

Zinc:

• LME zinc futures (25-tonne contracts)
• Mining stocks: Teck Resources, Hindustan Zinc, Boliden
• Zinc scrap trading: Accessible entry point with 10-20% margins

Nickel:

• LME nickel futures (6-tonne contracts)
• Mining/processing stocks: Nickel Industries, Vale, Nornickel
• Stainless steel scrap: Indirect nickel exposure with lower volatility

Monitor MetalMarket.cash for real-time zinc and nickel prices to time your entries.