The Business Unit Zinc recycling recycles zinc ashes, zinc scrap and other materials containing zinc from and for the zinc processing industry. The recycled zinc is reused in hot-dip galvanising, brass production, zinc smelting and the production of zinc oxide, zinc powders and zinc chemicals.

Looking back

Although the lower financial result of the Business Unit Zinc recycling by comparison with 2017 was affected to a major extent by the fall in the zinc price, this Business Unit performed well. In 2018, after a further increase initially in the first quarter, the zinc price fell by about 30%. That fall has a direct effect on Rezinal's revenue and cost price. Revenue fell and the gross margin was almost halved. This is not a surprising development because the margin was expected to fall after the excessive year 2017.

Average price per tonne of zinc in 2018

“The zinc price is key in both the buying and selling markets.

Looking ahead

Operationally, Rezinal had a good year despite the decline in the supplies of raw materials. When zinc prices fall, old zinc in particular is held back by the scrap trade as it waits for market prices to rise. The challenge for Rezinal is to purchase raw materials at the right time while ensuring that there are no production stoppages. Taking the zinc price and the economic stocks position into account, Rezinal uses strategic hedge contracts to partially cover the risk of price fluctuations.

The Business Unit Zinc recycling recycles zinc ashes, zinc scrap and other materials containing zinc from and for the zinc processing industry. The recycled zinc is reused in hot-dip galvanising, brass production, zinc smelting and the production of zinc oxide, zinc powders and zinc chemicals.

Looking back

Although the lower financial result of the Business Unit Zinc recycling by comparison with 2017 was affected to a major extent by the fall in the zinc price, this Business Unit performed well. In 2018, after a further increase initially in the first quarter, the zinc price fell by about 30%. That fall has a direct effect on Rezinal's revenue and cost price. Revenue fell and the gross margin was almost halved. This is not a surprising development because the margin was expected to fall after the excessive year 2017.

Average price per tonne of zinc in 2018

“The zinc price is key in both the buying and selling markets.

Looking ahead

Operationally, Rezinal had a good year despite the decline in the supplies of raw materials. When zinc prices fall, old zinc in particular is held back by the scrap trade as it waits for market prices to rise. The challenge for Rezinal is to purchase raw materials at the right time while ensuring that there are no production stoppages. Taking the zinc price and the economic stocks position into account, Rezinal uses strategic hedge contracts to partially cover the risk of price fluctuations.