Lead and Zinc
Lead and zinc come out of the same ores and often the same smelters, so their mine supply is linked, but their demand is not: zinc protects steel from rust while lead mostly goes into car batteries.
Lead (commodity) and Zinc (commodity): 3 relationships.
How they are linked
1. Co-mined ores
Joint production · Strong · Same ore bodies yield both
Lead and zinc minerals form together in the same deposits, so many mines produce concentrates of both metals, plus silver.
- 13 Mt world zinc mine output, 2025
- 4.5 Mt world lead mine output, 2025
In the US, lead is mined as a by-product at two zinc mines in Alaska. The link is not one to one: in the first ten months of 2025 world zinc mine output rose 6.5% while lead rose only 0.1%, since mine mixes differ.
Sources: USGS; USGS; International Lead and Zinc Study Group
2. Joint smelters
Joint production · Strong · Integrated lead-zinc smelting
Integrated miners run lead and zinc smelters side by side to treat mixed concentrates; Hindustan Zinc describes its Chanderiya lead-zinc smelter as the largest single-location smelter in the world.
- 827 kt Hindustan Zinc refined zinc, FY25
- 225 kt Hindustan Zinc refined lead, FY25
- about 75% Hindustan Zinc share of India's primary zinc market
Hindustan Zinc produced a record 1,095 kt of mined metal in FY25. Integrated smelters reduce the cost of handling mixed ores and capture silver, which helps lead-zinc producers through low zinc price years.
Sources: Hindustan Zinc; Hindustan Zinc
3. Price link: co-mined
Cost and price · Moderate · Both ways
Shared supply and trading on the LME link the prices, but end uses differ: galvanised steel for zinc, lead-acid batteries for lead.
- 0.59 monthly change correlation
- 0.59 12-month change correlation
- 0.41 fitted elasticity
Lead-acid batteries took about 67% of US lead use in 2025, and most US zinc went into galvanised steel. Market balances can diverge: in the first ten months of 2025 refined zinc was in a 76 kt surplus and lead in a 20 kt surplus.
Sources: Material Insights (World Bank, FRED, IMF data); USGS; USGS; International Lead and Zinc Study Group
For investors
Key learnings
- Mine supply of lead and zinc moves together, but not in fixed proportions, so mine mix changes can loosen one market while the other stays tight.
- Demand differs (galvanised steel for zinc, batteries for lead), so the price link is moderate at about 0.6.
- Integrated producers such as Hindustan Zinc earn from zinc, lead and silver together, which smooths their margins.
What to track
- LME zinc and lead prices and stocks: Relative tightness of the two markets (Daily · LME)
- ILZSG refined market balances: Surplus or deficit in each metal (Monthly · ILZSG)
- Hindustan Zinc production release: India's lead, zinc and silver output trend (Quarterly · company releases)
For policymakers
Key learnings
- India's lead and zinc supply rests largely on one integrated producer, so its mine and smelter plans shape national supply.
- India was the fourth-largest zinc miner in 2025, with about 870 kt, giving a base for galvanising and battery industries.
- Much lead supply comes from recycled batteries, so battery recycling rules matter as much as mining for lead supply.
What to track
- Domestic zinc and lead mine output: Self-reliance in base metals (Monthly · Indian Bureau of Mines)
- Lead battery recycling volumes: Secondary lead supply and pollution control (Yearly · Central Pollution Control Board (Battery Waste Management Rules returns))
India
India was the fourth-largest zinc miner in 2025, and Hindustan Zinc, with about 75% of the primary zinc market, mines and smelts both metals in Rajasthan.
Sources
- Price correlation, Material Insights, Material Insights (World Bank, FRED, IMF data)
- Mineral Commodity Summaries 2026: Lead, USGS (2026)
- Mineral Commodity Summaries 2026: Zinc, USGS (2026)
- Earnings press release, Q4 FY25, Hindustan Zinc (2025)
- Hindustan Zinc factsheet 2025, Hindustan Zinc (2025)
- ILZSG press release, December 2025, International Lead and Zinc Study Group (2025)