For the Quarter Ending March 2025
North America
In Q1 2025, the North American Zinc Carbonate market experienced a mixed price trend, influenced by fluctuating automotive demand and tariff-related supply chain dynamics. January began with moderate price increases, supported by a 3.8% year-over-year rise in vehicle sales, led by strong performance in EV and hybrid segments from brands like Honda, Hyundai, and Kia. This early demand boosted procurement of Zinc Carbonate for components such as gaskets and coatings.
In February, prices stabilized as overall auto sales declined by 2.3% year-over-year. Market uncertainty grew following the temporary postponement of 25% tariffs on vehicle imports from Canada and Mexico. Despite this, steady sales from select brands maintained demand for Zinc Carbonate, and supply chains remained largely undisrupted.
March marked a turning point, with a significant price uptick driven by a sharp 9.1% year-over-year surge in vehicle sales. A pre-tariff buying rush ahead of the April 3 tariff implementation pushed sales over 20% higher month-over-month. Light vehicle SAAR rose to 17.8 million units, intensifying demand for automotive-grade Zinc Carbonate. As inventories tightened and OEMs ramped up procurement, prices climbed further. Overall, Q1 ended with a firm price outlook, shaped by strong downstream activity, inventory shifts, and looming trade policy changes.
APAC
In Q1 2025, the price trend of Zinc Carbonate in the APAC region displayed a transition from early-quarter stability to a sharp correction by March. January began on a steady note, with a slight price increase of around 1.2% driven by elevated sulfuric acid costs and consistent supply chain operations, while demand from the automotive and industrial sectors helped maintain a balanced market. In February, prices dipped marginally by approximately 2.5% as global trade uncertainties began to weigh on buyer sentiment, prompting cautious procurement and slight inventory build-up.
Despite continued stability in production and logistics, the market began showing early signs of pressure from volatile feedstock trends and anticipation of external economic shifts, particularly related to U.S. trade policies. By March, the market saw a significant price drop of 8.90%, marking the most notable change of the quarter. This decline was largely due to adjustments in supply-demand dynamics and heightened global trade concerns, despite strong domestic automotive demand and stable manufacturing conditions.
Overall, the quarter closed with a downward trend, shaped by external macroeconomic factors and shifting procurement strategies in response to raw material volatility.
Europe
In Q1 2025, the European Zinc Carbonate market exhibited mixed trends, largely influenced by fluctuating vehicle demand, evolving powertrain preferences, and shifts in domestic production and exports, particularly within Germany’s automotive industry. January began with modest demand support as German car production rose 13% year-over-year and exports surged 19%. This uplift in automotive output drove steady Zinc Carbonate consumption, especially in components like rubber seals and coatings used in EVs and hybrids segments that recorded 53.5% and 15.7% growth, respectively.
February saw weakening fundamentals, with German vehicle registrations down 6.4% and production dipping 3%. However, the continued rise in EV and hybrid adoption up 30.8% and 12% respectively sustained downstream demand for Zinc Carbonate in EV battery casings and emission control parts. Despite this, a 20.8% decline in truck registrations and reduced exports signalled cooling momentum.
March closed the quarter on a relatively stable note. While overall car sales fell 3.9%, German passenger car production rebounded 8%, mirroring a similar gain in exports. Zinc Carbonate demand benefited from the sustained expansion of EV and plug-in hybrid markets up 35.5% and 65.8%, respectively.
Overall, Q1 2025 reflected a cautiously optimistic outlook, with green vehicle growth offsetting broader economic drag on traditional automotive output.
