For the Quarter Ending March 2022
North America
The prices of Zinc Oxide witnessed an increment in the first quarter of 2022 across the North American region. Zinc prices were evaluated at USD3950/MT in January and soared beyond USD4,000 per tonne in the second part of Q1 to a 15-year high, propelled by increased energy costs and supply concerns. The three-month zinc (primary material) contract traded on the London Metal Exchange (LME) rose to USD4,247 per metric tonne on March 7, setting a new high for the site since records began in 2007. Zinc metal prices, on the other hand, have fallen since their March 7 peak, but they are still 7% higher than they were at the beginning of the year. On the demand front, offtakes from the Rubber industries remained strong throughout the first quarter.
Asia Pacific
In the Indian market, the prices of Zinc Oxide escalated effectively in Q1 2022 from USD2621.54/MT to USD2797.79/MT Ex-Vadodara from January to March 2022. The demand from the downstream rubber and automotive industries remained firm throughout the quarter. In China, after the Federal Reserve signalled robust efforts to battle inflation in China, the Shanghai Metals Market (SMM) ended the first half of 2022 with gains in overnight trade on Friday, March 11. Domestic refined zinc output declined more than expected in February, according to the SMM survey, due to a variety of factors, including routine maintenance at several smelters in Yunnan and production unit suspensions due to Spring festival holidays, which further impacted the supply of Zinc Oxide. Following the second week of February, domestic smelters resumed consistent output, adding to the market's supply. The end-user automobile and pharmaceutical industries had considerable offtakes throughout the quarter on the demand side in the country.
Europe
During Q1 2022, European Zinc Oxide market showcased mixed sentiments due to the insufficient supplies and firm demand from the end-user industries. The prices of Zinc Oxide were estimated at USD3060/MT in Belgium during January 2022. Commodities dealers surged upwards in the second half of 2022, capturing a once-in-a-lifetime profit from shipping metals including Zinc metal out of China, as the war in Ukraine caused supply difficulties for European manufacturers who rely largely on Russian supplies. During H2 of the first quarter 2022, the sudden escalation of a worldwide supply crisis affected European purchasers the hardest. Furthermore, with global supplies running low, analysts and dealers said the unusual flow of metals from China to Europe only provided temporary relief, while Russian exports remained hampered.
For the Quarter Ending December 2021
North America
The market trend of Zinc Oxide remained stagnant throughout the fourth quarter of 2021 across the North American region. The prices of Zinc Oxide were assembled at USD 4665 per MT CFR California in December. The demand remained strong from the downstream sectors, and buying sentiments accelerated in Q4 due to the concerns over supply disruptions because of prolonged high energy prices and a weaker dollar. Zinc prices in the US domestic market observed an upward pressure due to supply tightness and high freight costs.
Asia
In Q4 of 2021, the Asian market of Zinc Oxide observed a significant rise in the prices in the month of November and then later got stabilized in December. In the Indian domestic market, the prices of Zinc Oxide escalated from USD 2603.15/MT to USD 2807.92/MT from October to December on the back of the increased raw material prices. The prices of Zinc Powder significantly climbed up in mid-November, which further exacerbated the prices of several downstream derivatives, including Zinc Oxide, across the country. Soaring Zinc metal costs have also supported the price trend of Zinc Oxide in the country. Several market players reported that their input cost had increased drastically that squeezed their margin in quarter 4 due to which they were left with no other option than to transfer this price burden onto the consumers. Ex-Vadodara prices for Zinc Oxide were settled at USD 2536.15 per MT in the ending week of December.
Europe
During the fourth quarter of 2021, the pricing trend of Zinc Oxide witnessed an upward trajectory across the European region. The prices of Zinc rose significantly in the 4th quarter due to the strong demand and disrupted supply which further affected the prices of Zinc Oxide across the region. Due to the lack of availability on the spot basis, consumers were paying more to secure the material in Q4. Peaking energy crises and high raw material prices further exacerbated the price trend of Zinc in the region.
For the Quarter Ending September 2021
North America
The overall market outlook of Zinc Oxide demonstrated an upward trajectory in North America during Q3. Disrupted manufacturing activities as a repercussion of Hurricane Ida in August end resulted in a drop in inventory levels of Zinc Oxide which thus surged its prices in the regional ZnO market. The consumption of Zinc Oxide effectively improved from the industrial rubber segment, due to pick up in market activities in September. In addition, significant rebound in downstream pigment sector also bolstered the overall demand for the product, which was running muted from last two months.
Asia
The Asian market witnessed a decent rise in the prices of Zinc Oxide during the third quarter of 2021. In India, prices climbed up again in the month of July, supported by rising feedstock prices amid strong demand from the domestic market. The demand for Zinc Oxide rose significantly during after July, under the influence of improving market activities after an effective decline in COVID cases in India. In addition, surging feedstock prices also exacerbated this overall price trajectory of Zinc Oxide in the country. Thus, the price of Zinc Oxide TS-99 eventually reached USD 2104/MT Ex-Vadodara and USD 2373/MT FOB Hazira during August.
Europe
In the European region, the domestic market of Zinc Oxide showcased mixed sentiments in Q3 2021. The orders of Zinc Oxide by manufacturing companies fell in September as the production of tires declined across the region. Imports from China had been slow in this quarter, which led to the decreased product inventories. Demand for Zinc Oxide kept falling in September and was hard to pick up amid worries over prolonged supply disruption.
For the Quarter Ending June 2021
North America
The diversion of upstream Zinc in the dietary supplements led to a rise in prices of Zinc Oxide in the North American region. Whereas uncertainties regarding the freight charges and container availability forced traders and suppliers to closely monitor the market dynamics in the second quarter of 2021. As a repercussion, buyers became more flexible to the European cargoes. Demand remained firm throughout the quarter as offtakes were consistent from cosmetics and personal care sector amidst the rise in enquiries for the skin care products.
Asia Pacific
The supply outlook in the Asia Pacific region was constraint in the second quarter of 2021, as the resurgence of Covid in several parts across the Southeast Asian region diverted volumes of feedstock Zinc to the pharmaceutical sector for supplement manufacturing. Due to devastating impact of Covid in India, prices of refined Zinc surged by 1.9% on m-o-m in May. Demand remained firm from the downstream personal care and cosmetics industries. Consequently, prices of Zinc Oxide rose taking cues from the hike in prices of feedstock Zinc and high demand.
Europe
During the second quarter of 2021, supply of Zinc Oxide remained ample in the European region. The production margins rebounded in the Northwest Europe post winter season which eased the supply outlook. Demand bolstered from the downstream personal care and cosmetics industries, supported by better public movement as mass vaccination drive rolled out across the European region. As a ripple effect, prices of Zinc Oxide in the European region stabilized in the second quarter.
For the Quarter Ending March 2021
North America
The demand of Zinc Oxide from downstream pharmaceutical and cosmetics industries improved over Q4. However, major plant outages in the USA Gulf region reduced its consumption as an intermediate from various segments amid the subzero temperature in the region. Supplies were ample as metallic zinc market rebounded since the previous quarter. The majority of Zinc Oxide supplies were diverted towards the pharmaceutical sector amid rising awareness of Zinc supplements among people to safeguard from the COVID hiked the prices of Zinc Oxide in North America.
Asia-Pacific (APAC)
The supplies of the Zinc Oxide in the Asia Pacific market showed mixed sentiments as they stood ample during the first quarter of 2021 taking cues from the plant turnarounds during the Chinese Lunar New Year holidays. In China, market outlook remained uncertain after the new environmental protection guidelines and inspection drives by the Chinese authorities. Demand slumped during Q1 as offtakes reduced from the downstream personal care and cosmetics sector amid ample inventories level due to oversupply of the raw material. The oversupply of Zinc metal and reduced demand resulted in decline on the prices of Zinc Oxide in the regional market.
Europe
In Europe, the Zinc Oxide supplies during Q1 2021 remained high due to an upsurge in inventories level of the Zinc Oxide. However, due to the limited industrial and commercial activities amid the lockdown in Europe and reduced plant operating rates in the first quarter, the demand showed a staggering fall within the quarter. However, improved offtakes from the downstream personal care & cosmetics sector were reported towards the end of the quarter.
For the Quarter Ending December 2020
Asia
In the Asian market, the demand of Zinc Oxide remained stable and marginally went down during Q4 2020. In China, potential Zinc Oxide shortage created panic among buyers which witnessed sharp rise in prices from Q3 to Q4. Manufacturers anticipated that supply will be restored within Q4 and prices would be stabilised again. Meanwhile, the demand in other Asian countries remained good but tight supply raised the prices initially but during December prices stopped accelerating and dropped again. FOB price of Zinc Oxide in Taiwan came down from USD 2630/tonne (October 2020) to USD 1800 USD/tonne (December 2020).
North America
Supply chain disruptions caused by multiple hurricanes, created the shortage of minerals across the region. Healthy demand but ample supply raised the prices of Zinc Oxide initially which later came down till the end December 2020. In USA, FOB price of Zinc Oxide slipped from USD 5120/tonne (October 2020) to USD 4000 /tonne (December 2020). The quarter ended with the news of SLG LLC collaborating with Evercare for global distribution of Zinc Oxide. This partnership would improve the distribution and availability of Zinc Oxide across the region.
Europe
Amid rapid spread of COVID-19 during Q4 2020, the market showed stability in demand. The demand was driven by the healthcare and rubber industries. On the other hand, European union banned the use of veterinary medicine containing more than 150 ppm Zinc Oxide. This announcement came in November 2020 and planned to be implemented till July 2021. This will reduce the demand of Zinc Oxide for veterinary supplement sector in Europe.
