In April 2025, the Iron Oxide market witnessed a noticeable drop in prices in both Europe and Asia. This was mainly because of weaker demand from downstream sectors like paints and coatings. Even though there were some early signs of improvement in parts of the market, overall demand was not strong enough to support prices. At the same time, supply levels stayed high, and shipping costs went down, which made it easier for traders to lower prices. Also, uncertainty in global trade, especially due to new tariffs, added to the pressure. Iron Oxide prices fell in Germany and across China, as demand from lower-end coating industries remained soft.

Key Takeaways:

• Iron Oxide prices fell in Europe and Asia during April 2025.
• Demand for Iron Oxide from the paints and coatings industry stayed low.
• High supply and cheaper freight pushed prices down.
• Trade tariffs and global tensions added to market instability.

In Europe, Iron Oxide prices in Germany dropped by about 5% in April. This price decline was mostly due to sluggish demand from the construction sector, which is a big user of Iron Oxide as a pigment. While the construction sector in Germany showed positive signs — with sentiment reaching its best level since May 2023 — that did not translate into more usage of Iron Oxide.

More building permits were issued and hopes for new infrastructure projects gave the market a slight boost. But traders stayed cautious. Falling oil prices, a stronger Euro, and more Chinese exports, partly due to U.S. trade restrictions, helped reduce inflation. On top of that, cheaper shipping rates meant more raw materials were available locally, which kept the market well-supplied and pushed Iron Oxide prices even lower.

In China and other parts of Asia, a similar pattern was seen. Iron Oxide prices in China dropped by 3.2% in April 2025. This was mainly because coating manufacturers, especially those producing low-end industrial coatings, continued to face competition and oversupply. At the China International Coatings Conference on April 10, officials pointed out a shift in focus toward functional coatings, which are expected to grow. Meanwhile, traditional coating sectors may face even more price pressure.

Additionally, the China’s non-manufacturing index was 50.4%, slightly lower than in March, but still in growth territory. The construction sector index was 51.9%, which also showed growth, though at a slower pace. Still, Iron Oxide demand remained soft, and plenty of supply kept prices from rising.

According to ChemAnalyst, Iron Oxide prices in Europe and Asia are expected to keep falling in May 2025. Demand is still weak, supply is high, and recent changes in trade policies, like new tariffs and shifting freight rates, have made prices less stable. This has led to more caution among traders. In Europe, construction outlook has improved but actual use remains low. In Asia, especially China, strong competition and careful buying continue to put pressure on prices.