{"id":21699,"date":"2024-07-26T17:02:50","date_gmt":"2024-07-26T10:02:50","guid":{"rendered":"https:\/\/edutrade.vn\/?post_type=product&p=21699"},"modified":"2026-01-06T14:18:27","modified_gmt":"2026-01-06T07:18:27","slug":"kem-lme","status":"publish","type":"product","link":"https:\/\/edutrade.vn\/en\/product\/kem-lme\/","title":{"rendered":"ZINC (LZHZ\/ZDS \u2013 LME )"},"content":{"rendered":"\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

Zinc (LZHZ\/ZDS \u2013 LME)<\/p>\n<\/td>\n<\/tr>\n

Size<\/td>\nFull<\/td>\n<\/tr>\n
Exchange<\/td>\nLME ( London Metal Exchange )<\/td>\n<\/tr>\n
Commodity code<\/td>\nLZHZ\/ZDS<\/td>\n<\/tr>\n
Contract lot value (market price)<\/td>\nCommodity price * contract size<\/td>\n<\/tr>\n
Contract size<\/td>\n25 tons<\/td>\n<\/tr>\n
Margin (changes according to MXV)<\/td>\n10% of contract lot value<\/td>\n<\/tr>\n
Trading price step<\/td>\n$0.5 ~ $12.5\/lot<\/td>\n<\/tr>\n
Quoted unit<\/td>\nUsd\/ton<\/td>\n<\/tr>\n
Profit\/loss fluctuation $1\/lot<\/td>\n$25<\/td>\n<\/tr>\n
Trading period<\/td>\n03 months from the date the contract is listed<\/td>\n<\/tr>\n
Trading schedule<\/td>\nMonday \u2013 Friday<\/td>\n<\/tr>\n
Trading session (winter opens 60 minutes late)<\/td>\n07:00 \u2013 01:00 (next day)<\/td>\n<\/tr>\n
Price range<\/td>\n15% closing price<\/td>\n<\/tr>\n
Quality standard<\/td>\nDetails according to LME Zinc trading regulations.<\/td>\n<\/tr>\n
Delivery Registration Date<\/td>\nAccording to MXV regulations<\/td>\n<\/tr>\n
First notice day<\/td>\nAccording to MXV regulations<\/td>\n<\/tr>\n
Last trading day<\/td>\nThe trading day immediately preceding the expiration date.<\/td>\n<\/tr>\n
Payment method<\/td>\nPhysical delivery<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

1. Introduction to Zinc Trading on the London Metal Exchange (LME)<\/h2>\n

Mining, Processing, and Applications:<\/em><\/p>\n

Zinc is an essential base metal, typically extracted from sulfide ores such as sphalerite. The ore is processed and refined into high-purity zinc, usually Special High Grade (SHG, ~99.995% purity), for industrial use.<\/p>\n

London Metal Exchange (LME):<\/em><\/p>\n

The LME is the world\u2019s largest metal trading center, where futures and options for zinc and other metals are traded. Established in 1877, LME is now part of Hong Kong Exchanges and Clearing Limited (HKEX). Headquartered in London, LME plays a key role in global metal pricing, providing high liquidity and large trading volumes.<\/p>\n

LME Zinc Contracts:\nInclude spot, forward, and futures contracts\nRequire delivery of high-quality zinc with a minimum purity of 99.995%\nCan be used for price hedging, physical delivery, investment, and speculation<\/p>\n

\"K\u1ebcM<\/p>\n

Market Trends in 2025<\/em><\/p>\n

The LME zinc market was highly volatile in 2025. Available stock in LME warehouses fell sharply, leading to higher prices and backwardation (spot prices above future prices), reflecting a shortage of physical zinc despite differing global stock levels. <\/em><\/p>\n

LME zinc inventory dropped to levels sufficient for less than one day of global consumption, causing a sudden market squeeze.<\/em><\/p>\n

2. Factors Affecting LME Zinc Price<\/h2>\n

Supply and Demand<\/em><\/p>\n

Supply: Global zinc production from mines and smelters directly affects LME zinc supply. Major producers include China, Peru, Australia, and India. Production fluctuations due to weather, strict environmental regulations, energy costs, or logistic disruptions can lead to price volatility.<\/p>\n

Demand: Zinc demand comes from construction, automotive, and aerospace industries. Increased demand tends to drive prices up, while weaker demand reduces prices.<\/p>\n

LME Inventories:<\/em><\/p>\n

LME-certified stock levels reflect the supply-demand balance in the physical market. In 2025, sharply reduced inventories created extremely tight market conditions, leading to price volatility and backwardation.<\/p>\n

US Dollar Exchange Rate:<\/em><\/p>\n

Zinc is traded in USD, so fluctuations in the US dollar affect LME zinc prices. A stronger USD generally lowers LME zinc prices for international buyers, and a weaker USD can make it more expensive.<\/p>\n

Prices of Substitute Materials:<\/em><\/p>\n

Prices of alternative metals, such as aluminum and steel, can influence zinc demand. If substitutes are cheaper, zinc demand may fall, pushing prices down. Conversely, higher substitute prices can increase zinc demand and push LME zinc prices up.<\/p>\n

Top Zinc Reserves by Country:<\/em><\/p>\n

    \n
  • Peru \u2013 15.1% (~$1.8 billion)<\/li>\n
  • Australia \u2013 13% (~$1.54 billion)<\/li>\n
  • Bolivia \u2013 11.9% (~$1.42 billion)<\/li>\n
  • United States \u2013 11.7% (~$1.38 billion)<\/li>\n
  • Mexico \u2013 4.9% (~$557 million)
    \n(Source: worldstopexports.com)<\/li>\n<\/ul>\n

    Major Consumers:<\/em><\/p>\n

    Leading zinc consumers include China, USA, Japan, and EU countries, especially in steel, automotive, and construction sectors due to high demand for galvanization.<\/p>\n

    Major Importers:<\/em><\/p>\n

    China, Japan, and South Korea are top importers to meet industrial demand and compensate for domestic shortages.<\/p>\n

    \"K\u1ebcM3. Effective LME Zinc Investment Strategies<\/h2>\n

    Understanding the Product:<\/em><\/p>\n

    Knowing LME zinc contracts is essential, including contract specifications, trading rules, risks, and factors affecting prices. Reliable sources include the LME, reputable brokers, commodity news websites, and industry publications.<\/p>\n

    Hedging Strategies:<\/em><\/p>\n

    LME zinc contracts are widely used for price risk management. For example, a steel manufacturer may purchase LME zinc futures to lock in raw material costs and reduce the risk of price fluctuations.<\/p>\n

    Monitoring Inventories and Global Production:<\/em><\/p>\n

    Track LME stock levels, output from key mines, and changes in tariffs, logistics, or government policies, which can strongly affect prices.<\/p>\n

    Macro Risk Assessment:<\/em><\/p>\n

    Consider monetary policy, USD exchange rates, global interest rates, and trade agreements (e.g., tariff disputes affecting supply chains).<\/p>\n

    Diversification and Capital Management:<\/em><\/p>\n

    Zinc futures are highly volatile. Combining them with other instruments or diversifying capital allocation can reduce market risk.<\/p>\n

    Consult Edu Trade Experts:<\/em><\/p>\n

      \n
    • Edu Trade is a leading and reputable member of the Vietnam Mercantile Exchange (MXV), specializing in commodity investment advisory services.<\/li>\n
    • With more than 10 years of hands-on experience, Edu Trade\u2019s experts provide timely and accurate market insights, enabling investors to identify potential opportunities and make informed investment decisions.<\/li>\n<\/ul>\n

      Edu Trade regularly organizes investment training programs to enhance commodity trading knowledge and skills for investors. Furthermore, investors can receive in-depth consultation from Edu Trade specialists to develop effective investment strategies and minimize unnecessary risks during trading activities.<\/p>\n

      Edu Trade\u2019s guidance helps investors better understand LME Zinc, including market dynamics, price drivers, and investment strategies..<\/p>\n

      If you are interested in investing in this commodity or participating in the commodity derivatives market, please contact our Hotline: 0866.212.677 for professional consultation and support.<\/p>\n

      Edu Trade \u2013 Leading Member of the Vietnam Commodity Exchange (MXV)<\/p>\n

      ","protected":false},"excerpt":{"rendered":"

      K\u1ebdm (LZHZ\/ZDS \u2013 LME ) Size Full S\u1edf Giao d\u1ecbch LME ( London Metal Exchange ) M\u00e3 h\u00e0ng h\u00f3a LZHZ\/ZDS G\u00eda tr\u1ecb l\u00f4 h\u1ee3p \u0111\u1ed3ng ( theo th\u1ecb tr\u01b0\u1eddng ) Gi\u00e1 h\u00e0ng h\u00f3a * \u0111\u1ed9 l\u1edbn h\u1ee3p \u0111\u1ed3ng \u0110\u1ed9 l\u1edbn h\u1ee3p \u0111\u1ed3ng 25 t\u1ea5n K\u00fd qu\u1ef9 ( thay \u0111\u1ed5i theo MXV ) 10% gi\u00e1 tr\u1ecb […]<\/p>","protected":false},"featured_media":21721,"template":"","meta":{"_acf_changed":false},"product_brand":[],"product_cat":[73],"product_tag":[],"class_list":{"0":"post-21699","1":"product","2":"type-product","3":"status-publish","4":"has-post-thumbnail","6":"product_cat-kim-loai","8":"first","9":"instock","10":"shipping-taxable","11":"product-type-simple"},"acf":[],"_links":{"self":[{"href":"https:\/\/edutrade.vn\/en\/wp-json\/wp\/v2\/product\/21699","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/edutrade.vn\/en\/wp-json\/wp\/v2\/product"}],"about":[{"href":"https:\/\/edutrade.vn\/en\/wp-json\/wp\/v2\/types\/product"}],"version-history":[{"count":12,"href":"https:\/\/edutrade.vn\/en\/wp-json\/wp\/v2\/product\/21699\/revisions"}],"predecessor-version":[{"id":28400,"href":"https:\/\/edutrade.vn\/en\/wp-json\/wp\/v2\/product\/21699\/revisions\/28400"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/edutrade.vn\/en\/wp-json\/wp\/v2\/media\/21721"}],"wp:attachment":[{"href":"https:\/\/edutrade.vn\/en\/wp-json\/wp\/v2\/media?parent=21699"}],"wp:term":[{"taxonomy":"product_brand","embeddable":true,"href":"https:\/\/edutrade.vn\/en\/wp-json\/wp\/v2\/product_brand?post=21699"},{"taxonomy":"product_cat","embeddable":true,"href":"https:\/\/edutrade.vn\/en\/wp-json\/wp\/v2\/product_cat?post=21699"},{"taxonomy":"product_tag","embeddable":true,"href":"https:\/\/edutrade.vn\/en\/wp-json\/wp\/v2\/product_tag?post=21699"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}