In June 2025, Chinese pharma grade zinc powder prices stabilized after an early-month decline of 0.17%, following sharp drops driven by oversupply and weak pharmaceutical demand. Temporary gains mid-month were short-lived as inventory overhang and subdued export interest continued to weigh on the market. By early July, prices rose slightly by 0.17%. However, experts anticipate a mild decline ahead due to negative zinc price trends and limited downstream demand.
Recent analysis by ChemAnalyst shows, the Chinese pharma grade zinc powder market stabilized in the first week of July 2025 following a volatile pricing environment observed throughout June. The early July stability was primarily supported by steady demand from pharmaceutical manufacturers, which helped maintain consistent procurement levels across the domestic market. Additionally, uninterrupted supply from local producers ensured balanced market conditions, preventing significant price swings and supporting a more stable trading environment.
Zinc powder inventory was high across the supply chain due to pre-holiday stockpiling in China and robust production in May. Although the manufacturing was slightly up compared to previous months, downstream consumption was not able to absorb the increased production. To balance the market and speed up inventory liquidation, zinc powder suppliers had to lower the prices. Adding to the pressure was the depreciation of US dollar against Chinese yuan which increased the export cost of Chinese goods and discouraged foreign buying. International buyers were also cautious due to rising freight cost and slow demand in major overseas markets especially North America and Europe.
Despite the difficulties, zinc powder prices did see a small upturn in the week ending June 13th when prices rose 2.44% due to a short-term surge in overseas demand and higher raw zinc prices. Exporters increased their quotes to offset the currency loss caused by the yuan’s appreciation. But this upturn was short lived. By the week ending June 20th, zinc powder prices dropped as raw zinc prices fell and inventory pressure continued. Domestic consumption of zinc powder was weak, and manufacturers had to offer discounts to keep orders flowing. The depreciation of the US dollar and the temporary trade truce between China and the US had no immediate impact on the domestic market recovery.
In the following weeks, the Chinese pharma grade zinc powder market started to stabilize. A small 0.19% increase was seen in the week ending June 27th due to the rebound in zinc prices, an unplanned plant shutdown that temporarily curtailed supply and exporters adjusting their quotes to offset exchange rate fluctuations. This stabilization continued into early July with prices rising 0.17% in the week ending July 4th. Steady demand from pharma manufacturers and stable supply helped to create a more balanced market for zinc powder.
But the outlook for July is still cautious. According to market sources, zinc powder prices are expected to fall in China as zinc prices are expected to be down for the month. Pharmaceutical demand is still weak and will not support big price increase. With distributors having sufficient stock, will priorities inventory clearance at lower prices to restore market liquidity. The supply and demand imbalance will keep zinc powder prices soft in the short term.
