Zinc Supply Chain Full Profile


Zinc Supply Chain - Executive Summary

Zinc

R

w Material

Zn

(solid)

Source of Raw Material:

Naturally occurring ore

^ Derivative Water Treatment Chemicals:
«

Zinc-based corrosion inhibitors

% of Total Domestic Consumption
Attributed to Water Sector:

Less than 1%

Understanding Chemical Supply Chains

^ Product Family:
Zinc

CAS No.: 7440-66-6

2 Shelf Life:
60+ Months

— RISK OF SUPPLY DISRUPTION (Assessed in 2022)

RISK RATING: Low

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RISK DRIVERS

The U.S. produces significant
quantities of zinc ores and
concentrates, which are ex-
ported for smelting. Refined
zinc is primarily imported,
and is used in significant
quantities for galvanizing
iron and steel. Fluctuations
in these industries may drive
domestic demand.

RISK PARAMETERS

Criticality: High. Essential for the pro-
duction of chemicals used in corro-
sion control.

Likelihood: Low. No history of supply
disruptions between 2000 and 2022.

Vulnerability: Low. The U.S. produces
significant quantities of zinc ores.
Supply of refined zinc is heavily reliant
on imports from foreign smelters.

PRODUCTION PROCESS

Water Treatment Applications

Mining

Water treatment chemical production

Other Applications

Input	End Use

Galvanizing

Brass and bronze manufacturing
Cosmetics and sunscreen
Animal feed
Fertilizer

DOMESTIC PRODUCTION AND CONSUMPTION, AND INTERNATIONAL TRADE

Domestic Production Locations (2019):

12, in Alaska, Idaho, Missouri, New York,
Tennessee, and Washington.

(^) International Trade (2019)

Primary Trading Partner (Imports): Peru
Primary Trading Partner (Exports): Canada

Domestic Consumption (2018):

18 M kg

¦	Domestic Production (824 M kg)

¦	Imports for Consumption (0.0005 M kg)

¦	Export of Domestic Production (806 M kg)

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Zinc Supply Chain - Full Profile

Product Description

Zinc (Zn), a widely used naturally occurring element, is not used directly in water treatment. Refined zinc is
commonly used to coat ferrous metals for corrosion control. Refined zinc is a primary input in the production of
zinc orthophosphate for use in distribution system corrosion control. The U.S. Government has stockpiled
refined zinc since 1967 for national defense purposes.

Use in Water Treatment
None.

Use as a Precursor to Other Water Treatment Chemicals

Refined zinc is used to manufacture zinc-based corrosion inhibitors, such as zinc orthophosphate.

Other Applications

Zinc is a widely used metal with a range of applications. All applications of zinc require processing and refining of
the ores and concentrates. The leading use of zinc is to coat metals for corrosion prevention. It is most
commonly used to produce galvanized steel. Zinc is also used to manufacture brass and bronze, and derivative
chemicals. Zinc oxide is used widely in tire manufacturing, cosmetics, and sunscreen, while zinc sulfate is used in
animal feed and fertilizers as a micronutrient (ATSDR, 2005; NCBI, 2021; USGS, 2022).

Primary Industrial Consumers

In 2018, approximately 88% of zinc consumed in the U.S. was used in the production of galvanized steel.
Production of zinc-based alloys and brass and bronze accounted for 11%, while all other uses accounted for the
remaining 1% of zinc consumption in 2018 (USGS, 2022).

Manufacturing, Transport, & Storage

Manufacturing Process

Zinc is found in a variety of widely distributed naturally occurring minerals. Zinc may be produced by
conventional underground or surface mining, though underground mining is more common (USGS, 2022). Most
ores are low in zinc content and require concentration before smelting and refining (DOE, 2002).

Mined zinc is washed, crushed, screened, and floated before chemical processing can take place. Concentration
of the zinc ore may include a sodium hydroxide leaching process, which yields crude zinc. Concentrated zinc may
be dried and calcined with sulfuric acid to yield zinc oxide (DOE, 2002).

The majority of domestically-mined zinc is exported as either a raw ore or zinc concentrate, and processed in
foreign smelters. As of 2018, only one domestic primary zinc smelter was in operation, located in Tennessee,
and this smelter was designed to treat zinc concentrates common to the region in which it operates (USGS,
2022).

Product Transport

Refined zinc, which may be sold as a solid, is routinely transported by ship, rail, truck, and pipeline (USGS, 2022).
Storage and Shelf Life

Zinc is stable and non-reactive over a wide range of temperatures. When stored properly, zinc can have a shelf
life in excess of 60 months.

EPA 817-F-22-053 | December 2022

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Zinc Supply Chain - Full Profile

Domestic Production & Consumption

Domestic Production

Production data was collected from U.S. Geological Survey (USGS), while trade data was collected from the U.S.
International Trade Commission (USITC) Dataweb, as shown in Table 1. Both production and trade data are
specific to zinc ores.

Table 1. Zinc Production and Trade Data Sources

Production and Trade Data

Category

Data Source

Identifier

Description

Domestic Production

U.S. Geological Survey

CAS No.: 7440-66-6

Zinc Ores and
Concentrates

Imports and Exports

U.S. International Trade Commission

FITS Code: 2608.00

Zinc Ores and
Concentrates

Total U.S. domestic production of zinc ores and concentrates was approximately 824 million kilograms (M kg) in
2018 (USGS, 2021). In 2018, zinc ores and concentrates were produced in six states (Alaska, Idaho, Missouri,
New York, Tennessee, and Washington) at 12 mining operations (USGS, 2022). In 2018, the leading producers
(by output) were located in Alaska and Tennessee. Approximately 78% of all recovered zinc was mined in Alaska
in 2018 (USGS, 2022).

Domestic Consumption

U.S. consumption of zinc ores and concentrates in 2018 is estimated at 18 M kg. This estimate includes
production of 824 M kg, import of 0.0005 M kg, minus export of 806 M kg (USGS, 2021; USITC, 2021), as shown
in Figure 1. Imports of zinc ores and concentrates is very limited, in part due to limited domestic smelting
capacity.

Domestic Consumption (2018):

18 M kg

¦ Domestic Production (824 M kg)

¦ Imports for Consumption (0.0005 M kg)

¦ Export of Domestic Production (806 M kg)

Figure 1. Domestic Production and Consumption of Zinc Ores and Concentrates in 2018

As noted above, the U.S. exports the vast majority of zinc ores and concentrates for smelting, and imports
refined zinc in large quantities. In 2018, the U.S. produced 116 M kg of refined zinc, imported 775 M kg, and
exported 23 M kg. Domestic consumption of refined zinc in 2018 was estimated at 868 M kg (USGS, 2021).

Trade & Tariffs

Worldwide Trade

Worldwide import and export data for zinc are reported through the World Bank's World Integrated Trade
Solutions (WITS) software, as a category specific to zinc ores and concentrates. In 2021, the U.S. ranked fifth

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Zinc Supply Chain - Full Profile

worldwide in total exports and 21st in total imports of zinc ores and concentrates. In 2021, Australia ranked first
worldwide in total exports and China ranked first worldwide in total imports (WITS, 2022), as shown in Table 2.

Table 2. WITS Worldwide Export and Import of Zinc Ores and Concentrates in 2021

2021 Worldwide Trade
Zinc Ores and Concentrates (HS Code 2608.00)

Top 5 Worldwide Exporters

Top 5 Worldwide Importers

Australia

2,102 M kg

China

3,825 M kg

Peru

1,611 M kg

South Korea

1,819 M kg

Turkey

856 M kg

Japan

907 M kg

Bolivia

700 M kg

Spain

885 M kg

United States

658 M kg

Netherlands

508 M kg

Domestic Imports and Exports

Domestic import and export data are reported by USITC in categories specific to zinc ores and concentrates.
Figure 2 summarizes imports for consumption1 and domestic exports2 of zinc ores and concentrates between
2015 and 2020. During this period, the overall quantity of imports fluctuated from year to year, with the
greatest volume of imports occurring in 2017. The volume of exports, considerably larger than the volume of
imports, remained relatively steady. Over this five-year period, Canada was the primary recipients of domestic
exports while the primary source of imports was Peru, with a much smaller quantity consistently originating
from Canada throughout this period (USITC, 2021).

900
800
700
600
500
400
300
200
100
0

Domestic Trade of Zinc Ores and Concentrates
HS Code 2608.00

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I Imports from Peru
I Imports from Canada
Imports from Other Countries

I Exports to Canada
Exports to Spain
Exports to Other Countries

Figure 2. USITC Domestic Import and Export of Zinc between 2015 and 2020

1 Imports for consumption are a subset of general imports, representing the total amount cleared through customs and entering
consumption channels, not anticipated to be reshipped to foreign points, but may include some reexports.

2 Domestic exports are a subset of total exports, representing export of domestic merchandise which are produced or manufactured in
the U.S. and commodities of foreign origin which have been changed in the U.S.

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Zinc Supply Chain - Full Profile

As mentioned previously, the U.S. imports significant quantities of refined zinc. The imported quantity of refined
zinc was comparable to or in excess of the quantity of exported zinc ores and concentrates through the period of
2015 through 2020. The primary trade partner for exports and imports of refined zinc is Canada (USITC, 2022).

Tariffs

There is no general or additional duty for import of zinc (USITC, 2022), as summarized in Table 3.

Table 3. 2022 Domestic Tariff Schedule for Zinc

HS Code

General Duty

Additional Duty - China
(Section 301 Tariff List)

Special Duty

2608.00

None

None

None

Market History & Risk Evaluation

History of Shortages

The North American market for zinc has long been dominated by use in galvanizing processes for iron and steel,
and fluctuations for this end use drive demand in the market. Despite fluctuations in these industries, notable
domestic zinc supply chain disruptions between 2000 and 2022 were not identified.

Risk Evaluation

The complete risk assessment methodology is described in Understanding Water Treatment Chemical Supply
Chains and the Risk of Disruptions (EPA, 2022). The risk rating is calculated as the product of the following three
risk parameters:

Risk = Criticality x Likelihood x Vulnerability
Criticality Measure of the importance of a chemical to the water sector

Likelihood Measure of the probability that the chemical will experience a supply disruption in the
future, which is estimated based on past occurrence of supply disruptions

Vulnerability Measure of the market dynamics that make a chemical market more or less resilient to
supply disruptions

The individual parameter rating is based on evaluation of one or more attributes of the chemical or its supply
chain. The ratings and drivers for these three risk parameters are shown below in Table 4.

4

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Zinc Supply Chain - Full Profile

Table 4. Supply Chain Risk Evaluation for Zinc

Risk Parameter Ratings and Drivers

Criticality

Zinc is essential to production of all
zinc-based water treatment
chemicals.

Likelihood

There were no identified disruptions
in the supply of zinc between 2000
and 2022.

Vulnerability

The U.S. produces large quantities of
zinc ores and concentrates. However,
the majority of zinc ores and
concentrates are exported for
smelting, and refined zinc is imported
for widespread domestic use. Imports
of refined zinc are equivalent or
greater than exports of zinc ores.

Risk Rating: Low

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References

Agency for Toxic Substances and Disease Registry (ATSDR), 2005. Toxicological Profile for Zinc, retrieved
from https://www.atsdr.cdc.gov/toxprofiles/tp60.pdf

EPA, 2022. Understanding Water Treatment Chemical Supply Chains and the Risk of Disruptions, retrieved
from https://www.epa.gov/waterutilityresponse/risk-disruptions-supplv-water-treatment-chemicals

National Center for Biotechnology Information (NCBI), 2021. PubChem Compound Summary for CID
5362487, Zinc, retrieved from https://pubchem.ncbi.nlm.nih.gov/compound/Zinc

U.S. Department of Energy (DOE), 2002. Energy and Environmental Profile of the U.S. Mining Industry,
retrieved from https://www.energy.gov/sites/prod/files/2013/ll/f4/lead zinc.pdf

U.S. Geological Survey (USGS), 2021. Mineral commodity Summaries for Zinc, retrieved from
https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-zinc.pdf

U.S. Geological Survey (USGS), 2022. 2018 Minerals Yearbook: Zinc, retrieved from
https://pubs.usgs.gov/mvb/voll/2018/mvbl-2018-zinc.pdf

U.S. International Trade Commission (USITC), 2021. USITC DataWeb, retrieved from
https://dataweb.usitc.gov/

U.S. International Trade Commission (USITC), 2022. Harmonized Tariff Schedule (HTS) Search, retrieved from
https://hts.usitc.gov/

World Integrated Trade Solutions (WITS), 2022. Trade Statistics by Product (HS 6-digit), retrieved from
https://wits.worldbank.org/trade/countrv-bvhs6product.aspx?lang=en#void

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