Trump's penny purge sends one corner of zinc lobby reeling

Between the line: Americans for Common Cents — which argues the penny's value and benefits on Capital Hill — is assailing President Trump's move to suspend production of the 1-cent coin.

• The group is sponsored by Artazn, which sells zinc coin blanks that the U.S. Mint stamps into pennies.

Zoom in: "We would hope the president would reverse course," Mark Weller, a lobbyist representing Americans for Common Cents, tells Axios.

• He argued that eliminating the penny would lead to a "hidden rounding tax" from merchants, and downplayed the money-saving argument, saying the U.S. Mint's overhead costs would not go away (it still needs to produce nickels and dimes, the argument goes): "The idea that this is all going to even out is illusory."

Follow the money: Each penny cost 3.69 cents to make in the 2024 fiscal year, according to the U.S. Mint.

• The unit cost for nickels was 13.78 cents, the report said.

Threat level: Zinc sellers were already struggling with declining prices before Elon Musk's Department of Government Efficiency and then the president imperiled the penny.

• Average spot prices for zinc fell by 4.7% to $2,641 per tonne in the 2024 fiscal year, according to the U.S. Mint.
• Artazn, formerly known as Jarden Zinc Products, did not respond to a request for comment.

Yes, but: The total volume of zinc used in penny production represents a sliver of global output, which topped 14 million tonnes as recently as 2021.

• Nyrstar — which operates some of the largest American zinc mines — tells Axios that "any decisions around penny production would not impact Nyrstar's business in the U.S."