Earlier this November, I had the opportunity to attend the Zinc Metal Roundtable, hosted by IZA in Nashville, Tennessee. The event, held from November 5–7, brought together industry leaders, analysts, and stakeholders for a series of presentations covering steel and zinc market trends, technological advances, and policy shifts.

Data Centers and Market Forecasts

Jeffrey Lorch of McKinsey & Co. delivered a compelling presentation, emphasizing the expanding role of data centers in driving demand for steel and zinc. His insights closely matched what Nucor shared with AGA in August, highlighting that data centers could be a significant area for future growth. Lorch’s slides and McKinsey’s online reports suggest that this sector’s trajectory is almost unfathomable. If it comes to fruition at the levels McKinsey is projecting, that would be equivalent to 15x the global steel production. The potential tonnage here for hot-dip galvanizing over the next five years could dominate our market.

Lorch also spotlighted the defense market—a segment not often singled out—predicting it will account for 4% of global steel demand by 2030, with a remarkable 2.9x growth in demand over the next five years. This is another area where we know there is strong preference for HDG and metallizing. Finally, Lorch noted some increases in the mining sector, another strong sector for HDG use. This is particularly of interest for Latin America, as McKinsey projects $3.5 trillion in mining investment over the next five years, with 25% likely in Latin America.

Modernization and Energy Infrastructure

Tim Yang from TD Asset Management discussed a broader topic around the cycles of inflation, but within his presentation, he touched on data center demand and its pressure on the power grid and necessary modernization. He noted in Asia, there are many super high-voltage lines to carry power across countries, but the US does not currently have any of these. He noted the energy demand of data centers – 100MW to 500MW – is equivalent to a small city. Not only does this put pressure on the grid, but it also raises electricity prices. I foresee this leading to not only more investment in T&D (strong users of HDG) but also a positive sign that solar development will likely continue even with the phase out of incentives. However, it is possible it is more focused on residential grade, as homeowners look to offset increased energy prices.

Tariffs, Trade, and Industry Policy

Dan Pickard’s presentation on tariffs and trade policy provided a clear overview of recent developments, including Trump administration strategies and potential Supreme Court outcomes. Pickard highlighted Trump’s cabinet in both his first and second term has had staff very connected to the steel industry, including attorneys who have defended US steel makers in dumping cases involving China. He noted that even if Trump loses his case at the Supreme Court, based on his authority to place tariffs under the IEEPA, it does not mean the tariffs will go away. He believes Trump will just enforce the tariffs under 232s and 301s where his authority is less vulnerable to litigation. Trump’s plan when taking office in 2025 was to “Flood the Zone” with Executive Orders, which he did issuing 137 in 100 days, the previous high for any president was around 40. Finally, Pickard discussed possible changes to USMCA, suggesting that renegotiations could reshape trade rules for Canada, Mexico, with particular focus on the auto industry.

Industry Announcements and Noteworthy Moments

Outside of these presentations, IZA staff and other industry professionals provided a lot of interesting data and information on the zinc industry and its impact to downstream users. Overall, there are a lot of positive signs for the galvanizing industry in the Americas over the next five years. The Zinc Metal Roundtable continues to be an excellent networking opportunity coupled with a wealth of market intelligence. If you didn’t get a chance to attend this year, the AGA will co-locate our November Committee and Board meetings with the event again in 2026, and I highly encourage you to check it out.