Brisk Downstream Demand Drives the Asian Zinc Oxide Prices
- 17-May-2023 4:03 PM
- Journalist: Sasha Fernandes
Mumbai, India- The rise in seasonal demand from the downstream rubber and personal care product industries in the Asian market forced the producer to increase the Zinc Oxide price during April 2023. In India, the price of Zinc Oxide took a giant charge in April 2023, with a growth of 25.8% compared to the previous month. Since India is the second largest exporter of Zinc Oxide across the globe, major enterprises traded their cargoes at an elevated price with healthy spot market discussions. In terms of the feedstock market, Zinc metal prices are also supported by bullish demand in the Asian market and lower inventory levels.
The demand for Zinc Oxide was healthy from the downstream industries, but the product supply remained steady during the entire month amid the overall stability of economic activities within the region. Additionally, production activities were sustained uninterrupted, and the significant ventures tried to cope with the market demand. Furthermore, the mounting price trend was also influenced by expensive imports of feedstock Zinc metal and the production cost of the product.
In conjunction with the rapid growth of the Indian automotive industry, the demand for high-quality tires has also been on the rise. As a result, the numerous tire companies operating in the Indian market increased the consumption of Zinc Oxide, resulting in an uptick in trading activities. The Asian region's demand for Zinc Oxide from the skincare industry increased along with the onset of summer. Due to the enormous demand from the businesses, the producer and suppliers had to expand their supply and production rates.
As per ChemAnalyst, the price of Zinc oxide in the forthcoming months is expected to remain brisk in the Asian market with a surge in price quotations from the major manufacturing units. Inventories of Zinc Oxide in the Asian market will remain the topic of discussion as surging production costs and limited availability in the regional market will further provide cost support.