The prices of zinc oxide rose at a moderate and strong pace in China and the U.S., respectively, in October 2025. Stable consumption from the tire sector propped up the Chinese market, whereas constrained feedstock supply and resilient downstream activity drove stronger price growth in the United States.
Prices of zinc oxide in China crept up by 0.6% in October on the back of stable downstream demand and moderately firm supply conditions. Operating rates across major Zinc oxide production hubs averaged 58.19%, reflecting stable output and improved factory efficiency. A slight rise in feedstock zinc prices added mild cost-side pressure, while localized environmental restrictions in Tianjin and Hebei temporarily disrupted production and logistics. These curbs, however, did not cause widespread shortages, as supply chains remained functional with only minor delays.
On the demand side, the domestic rubber and tire industries continued to operate stably. This put the output of semi-steel tires at 74% while all-steel tire production in Shandong rose to 66%. Export performance supported this sustained offtake as Goodyear's Asia Pacific segment net sales reached $501 million with rising demand for premium tires. In addition, strong automotive sales in the Indian market strengthened Zinc oxide exports for tire manufacturing which had offset the moderate decline in Japanese auto sales and contributed to improve market sentiments for Zinc oxide.
In the US, Zinc oxide prices increased by 3% in October on the back of tighter supply conditions and improved demand from the downstream segments. The LME deliverable stocks decreased to only 24,425 tons, keeping feedstock in short supply and raising production costs. US manufacturing stabilized, but transport delays and import problems persisted, partly as a result of trade-related uncertainties.
On the consumption side, Zinc oxide demand was underpinned by the steady growth recorded in the automotive and tire industries, with Goodyear's Americas segment recording a 5% year-on-year increase in tire volumes. Consumption for coatings, concrete additives, and sealants was further supported by the strong pace of construction and infrastructure spending. Barring few hiccups related to labor and supply chain disruptions, overall offtake remained strong, thus justifying the 3% price hike recorded in the US Zinc oxide market.
In the near term, Chinese prices are expected to be flat to slightly higher for Zinc oxide, with continued tire production and export demand from regional markets though environmental restrictions may lead to localized supply challenges. In the U.S., Zinc oxide prices could stay elevated if global zinc inventories remain tight and logistical inefficiencies persist. On a worldwide basis, fluctuations in the availability of zinc feedstock will continue to be the principal driver of short-term pricing, as manufacturers and downstream consumers keep close watch on inventory and operational trends, anticipating volatility.
