Assessing mineral supply concentration from different perspectives through a case study of zinc

Christine L. Thomas (), Nedal T. Nassar () and John H. DeYoung ()
Additional contact information
Christine L. Thomas: U.S. Geological Survey, National Minerals Information Center
Nedal T. Nassar: U.S. Geological Survey, National Minerals Information Center
John H. DeYoung: U.S. Geological Survey, National Minerals Information Center

Mineral Economics, 2022, vol. 35, issue 3, No 18, 607-616

Abstract: Abstract Increasing demand for nonfuel mineral commodities has increased concerns regarding the reliability of their supplies. “Criticality” assessments over the past decade have attempted to capture this concern through a set of indicators, the most common of which quantifies the risk associated with market concentration by applying the Herfindahl–Hirschman Index (HHI) to the world production of a given commodity by country in a given year. Although this approach is useful, it inherently assumes that all of world production is available to the market and is thus potentially at risk. In this analysis, the HHI, as well as HHI weighted by country governance, is calculated for mined and refined zinc via the standard approach of including all world production data and comparing that to the HHI when using the best estimate of what is available to the world market. The results indicate that although the HHI of both mined and refined zinc world production has increased markedly over the past decade, the HHI for what is available to the market for mined and refined zinc has remained relatively constant and low, which is indicative of minimal supply risk. This is mainly owing to the fact that a large and increasing share of the world’s mined and refined zinc production comes from China, but that production supplies domestic consumption as well as small amounts of exports. As a result, the zinc materials that are available to the world market are produced by a relatively large and diverse set of countries. Although these analyses are specific to zinc, they are likely to be comparable for other commodities of which the largest producers are also the largest consumers and highlight the importance of examining different perspectives in criticality assessments.

Keywords: Herfindahl–Hirschman Index; Market concentration; Supply risk; Criticality; Critical raw materials (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://link.springer.com/10.1007/s13563-021-00291-2 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:minecn:v:35:y:2022:i:3:d:10.1007_s13563-021-00291-2

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/13563

DOI: 10.1007/s13563-021-00291-2

Access Statistics for this article

Mineral Economics is currently edited by Magnus Ericsson and Patrik Söderholm

More articles in Mineral Economics from Springer, Raw Materials Group (RMG), Luleå University of Technology
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().