Zinc futures (ZNC) at CME Group are a significant and growing component of the evolving zinc marketplace.
Our Special High Grade (SHG) Zinc futures contract (ZNC) offers the ability to deliver, or take delivery of, Special High Grade Zinc ingots in a timely, transparent and efficient fashion at CME Group. The contract is registered and regulated by facilities in the United States, Europe and Asia with the recent expansion of storage and delivery warehouses.
Who Trades Zinc?
The contract is relevant to zinc market participants across the supply chain, including miners, producers, distributors, merchants, traders, end users and banks.
Physically-settled contracts are an important hedging tool by commercial users in the zinc industry, as prices have increased due to decreases in supply.
Investors may also use this contract as arbitrage opportunities or to manage price exposure.
The Contract
Each COMEX Zinc futures contract represents 25 metric tons of deliverable zinc. The minimum tick increment is $0.50, making the minimum tick value $12.50 (25MT x $0.50 per tick). The contract trades on CME Globex nearly around the clock, six days a week, and traders are able to leverage substantial margin efficiencies when gaining exposure to this market. ZNC is also block trade eligible with submission for clearing on CME ClearPort for privately-negotiated trades.
Zinc futures are a beneficial addition for risk management and portfolio diversification for metals market participants.
