For the Quarter Ending June 2025
North America
• The Zinc Oxide Price Index in North America declined by 1.0% quarter-over-quarter in Q2 2025, as muted demand from the tire and rubber sectors, coupled with stable domestic production and favourable import conditions, exerted downward pricing pressure.
• Supply dynamics remained balanced, with consistent output from domestic producers and seamless inflows from Canada and Mexico, leveraging USMCA trade benefits. However, rising input costs toward the quarter-end began to tighten production margins.
• Freight conditions initially facilitated smooth imports, with cost-effective cross-border trade flows supporting market liquidity, but container rate hikes and congestion at Gulf Coast ports in June introduced cost-side inflation, impacting landed costs.
• Demand fundamentals were largely subdued, driven by persistent weakness in automotive sales and cautious procurement behaviour across tire manufacturers, though partial support came from construction-related applications in adhesives, coatings, and ceramics.
• In conclusion, the North American Zinc Oxide market in Q2 faced demand-driven headwinds despite steady supply, but escalating feedstock and logistics costs in June signalled a shift towards cost-push inflation, potentially capping further price declines.
Why did the price of Zinc Oxide change in July 2025 in North America?
• Zinc Oxide prices in North America are expected to remain range-bound in July, with supply-side cost inflation offset by stagnant demand from automotive and rubber sectors.
• Domestic producers continue to grapple with rising zinc ingot costs, compelling them to adopt a cautious pricing strategy, while importers face elevated freight and handling charges into key ports like Houston.
• Downstream demand from construction segments is projected to provide some stability, but this remains insufficient to fully counterbalance the persistent lethargy in tire manufacturing procurement.
• Looking ahead, unless a significant restocking trigger emerges, the market is likely to stay in a cost-balanced yet demand-suppressed environment, limiting any sharp price movements.
Europe
• Zinc Oxide prices in Europe declined through Q2 2025, pressured by weak demand from the tire and rubber sectors amid sufficient supply. Buyers limited procurement as high finished goods inventories kept new orders subdued.
• Manufacturers maintained steady production but rising zinc ingot and energy costs started squeezing margins. Import flows from Asia and Eastern Europe continued without major disruptions, keeping market supply ample.
• Logistics remained functional, though certain Northern European ports faced congestion, leading to occasional inland transport delays. However, these issues did not significantly disrupt material availability.
• Demand from coatings, ceramics, and adhesives provided limited support, but was not enough to offset soft offtake from core automotive-linked industries. Downstream sectors continued cautious buying, avoiding excess stock build-up.
• In summary, Europe’s Zinc Oxide market in Q2 was oversupplied, with stable production and weak demand keeping prices under downward pressure despite rising input and freight costs.
Why did the price of Zinc Oxide change in July 2025 in Europe?
• Zinc Oxide prices in Europe edged up in July as rising zinc ingot and freight costs increased production expenses.
• Suppliers implemented slight price hikes to protect margins, even though downstream demand remained weak.
• The construction sector provided limited consumption support, mainly in coatings and adhesives, preventing a larger demand-driven decline.
• Overall, cost-driven pressures outweighed muted demand, resulting in a marginal upward price correction during July.
APAC
• The Zinc Oxide Price Index in APAC declined by 4.1% quarter-over-quarter in Q2 2025, as persistently soft downstream demand and inventory surpluses outweighed the easing of upstream cost pressures.
• Supply levels remained ample across the region, with Chinese producers maintaining steady output amid a seasonal recovery in zinc ore availability. Despite stable production rates, weak order books led to gradual inventory build-up throughout Q2.
• Logistics remained functional, with only isolated bottlenecks near key industrial hubs, while lower zinc feedstock prices prevented any significant cost-led inflation. However, exporters grappled with delayed payments and trade uncertainties, especially amid US-China tariff escalations.
• Demand fundamentals were notably weak, as the rubber and tire sector—the primary consumer of zinc oxide—faced sluggish offtake due to high finished goods inventory. Export demand faltered too, with international buyers adopting a cautious stance amid trade tensions and adequate stock levels.
• In conclusion, the APAC Zinc Oxide market in Q2 was characterized by an oversupplied landscape and frail downstream demand, leaving prices under persistent downward pressure despite cost relief from upstream zinc ingot markets.
Why did the price of Zinc Oxide change in July 2025 in APAC?
• In July 2025, Zinc Oxide prices in APAC trended downwards compared to June, driven by continuous demand lethargy in the automotive tire and synthetic rubber sectors.
• On the supply front, producers refrained from aggressive output cuts, resulting in sustained inventory overhang, even as upstream zinc feed costs remained subdued.
• Export demand offered no meaningful support, with overseas buyers resisting fresh spot deals due to elevated trade barriers and sufficient inventories across key markets.
• Looking ahead, the APAC Zinc Oxide market is expected to face further price strain in August unless significant restocking triggers emerge, as current supply-demand dynamics remain tilted towards a buyer’s market.
For the Quarter Ending March 2025
North America
In Q1 2025, zinc oxide prices in the North American region recorded a quarter-on-quarter decline of 2.7% compared to Q4 2024. At the start of the quarter, prices trended downward as feedstock zinc ingot costs fell, easing production expenses. Supply chains remained stable, aided by the resolution of port strike threats, ensuring smooth logistics. However, demand was sluggish across key sectors, particularly automotive and industrial, where procurement slowed amid inflation concerns and trade policy uncertainties under the new U.S. administration.
Through mid-quarter, prices continued to soften as zinc ingot values declined further and downstream buying remained muted. Although weather-related disruptions cleared, market sentiment worsened following the introduction of new tariffs on imports from Mexico and Canada, triggering trade retaliation. Tire and rubber manufacturers adopted a cautious approach, avoiding bulk purchases and relying on existing inventories. Industrial demand also remained weak, contributing to subdued consumption of zinc oxide.
By quarter-end, prices stabilized marginally as feedstock prices began to rise. Nonetheless, overall demand remained constrained by deteriorating consumer confidence and policy-driven market volatility. Despite balanced supply, persistent downstream caution and macroeconomic headwinds drove the overall quarterly price decline.
APAC
In Q1 2025, zinc oxide prices in the APAC region recorded a quarter-on-quarter decline of 5.1% compared to Q4 2024. Early in the quarter, prices remained stable as lower feedstock zinc costs supported steady production, and rubber-grade zinc oxide demand held firm. However, seasonal factory shutdowns and cold weather led to reduced activity in the tyre and ceramics sectors, softening overall demand toward the Spring Festival period. As the quarter progressed, prices declined amid continued high supply and lacklustre demand recovery. Post-holiday production remained strong, backed by sufficient inventories and efficient logistics. However, the tyre and automotive sectors showed limited buying interest due to cautious sentiment and weak NEV sales, contributing to slower destocking and restrained zinc oxide consumption. By the end of the quarter, prices stabilized slightly as supply levels were adjusted to match the subdued demand. Manufacturers kept operations lean to prevent inventory build-up, while downstream buyers delayed bulk procurement, prioritizing existing stock usage. Limited export activity and muted domestic orders confirmed weak market momentum, ultimately driving the overall quarter-on-quarter decline in zinc oxide prices. China registered the most significant decline, with the quarter-end price settling at USD 2725/MT FOB Qingdao.
Europe
In Q1 2025, zinc oxide prices in the European region recorded a quarter-on-quarter decline compared to Q4 2024. At the start of the quarter, prices softened slightly, supported by a decline in feedstock zinc ingot costs, which reduced production expenses. Demand from key downstream sectors, particularly rubber and ceramics, was moderate. Automotive sector recovery post-holidays led to some uplift in rubber-grade zinc oxide consumption, though overall market sentiment remained cautious amid ongoing economic uncertainty. Mid-quarter, prices continued to decline as zinc ingot values dropped further and supply remained ample. Producers operated steadily, managing inventories effectively, but downstream demand lagged. The tyre and automotive industries, while showing signs of rebound in volume, remained price-sensitive along with limited export opportunities curbing broader zinc oxide consumption across Europe. Toward quarter-end, prices saw a marginal rebound as zinc ingot prices edged up and select plant slowdowns tightened availability slightly. However, rising Asian imports and weak industrial demand limited any significant recovery. Overall, the Q1 price decline was driven by prolonged soft demand and declining feedstock costs through most of the quarter.
For the Quarter Ending December 2024
North America
In Q4 2024, the Zinc Oxide market in the USA experienced a stable but cautious environment, characterized by modest price fluctuations and steady demand across key industries. The market saw gradual price increases, supported by rising feedstock costs, particularly Zinc Ingot, and sustained demand from sectors such as rubber, paints, and cosmetics. Despite the price uptick, the overall market conditions remained balanced, driven by reliable consumption from the automotive industry, although growth was somewhat restrained by high inventory levels and cautious consumer sentiment.
The rubber industry, particularly tire manufacturing, continued to be a major driver for Zinc Oxide demand, with steady consumption despite some economic uncertainties. The paints and coatings industry also showed stable demand, aided by seasonal purchases ahead of year-end construction projects. However, logistical challenges, including rising freight costs and port congestion, were key factors impacting the market, leading to increased operational costs for manufacturers.
On the supply side, production levels remained adequate, although there were some constraints due to rising costs and supply chain inefficiencies. The domestic market in the USA also faced some competition from international suppliers, particularly from countries with lower production costs.
APAC
In Q4 2024, the Zinc Oxide market in the APAC region experienced a stable pricing trend, with some upward pressure. The market saw a moderate 2% increase in Zinc Oxide prices compared to Q3, reflecting resilience in both supply and demand dynamics. This price stability can be attributed to steady demand from key industries, including rubber, paints, and cosmetics, as well as the strong position of the Indian market. While global economic challenges persisted, domestic consumption in India provided a buffer against external uncertainties. The rubber sector, crucial for Zinc Oxide, maintained a steady demand despite a slowdown in industrial activity. The automotive sector’s recovery in India and China helped bolster demand, although challenges such as high inflation and rising feedstock costs, especially Zinc Ingot, placed pressure on margins. Logistical constraints in India, primarily at key ports, also contributed to minor supply chain disruptions but did not significantly affect the overall market flow. In terms of pricing, Zinc Oxide (Rubber Grade) Ex-Vadodara, India, ended Q4 2024 at USD 2525/MT. The quarter saw a steady upward trend in prices, with key factors such as rising feedstock costs and stable domestic consumption fueling the rise.
Europe
In Q4 2024, the European Zinc Oxide market experienced a trend of price stabilization, with supply and demand balancing out after a period of volatility. Demand from key downstream industries such as rubber and paints remained relatively steady, despite challenges in the automotive sector. The rubber industry, a significant consumer of Zinc Oxide, saw stable demand despite a slowdown in automotive production. Although the automotive sector showed signs of moderate recovery, its growth remained restrained, limiting the overall consumption of Zinc Oxide in tire manufacturing. The paints and coatings sector also faced subdued demand, a common trend following the festive season, as construction activity slowed down. Despite steady consumption from these industries, external factors such as inflationary pressures and geopolitical tensions continued to impact the market. The European Automobile Manufacturers Association (ACEA) reported a slight recovery in automotive production, but it did not significantly boost Zinc Oxide demand. Similarly, the paints and coatings market faced slower demand due to the seasonal dip in construction. On the supply side, logistics improved, with better port operations and stable inventory levels ensuring smooth product availability. However, the ongoing geopolitical uncertainties and inflationary pressures weighed on production costs, preventing a full recovery in market stability.
For the Quarter Ending September 2024
North America
In Q3 2024, Zinc Oxide prices in North America experienced a robust increase compared to the same period last year, driven by several factors. Global supply chain disruptions led to reduced availability of Zinc Oxide, which exerted significant upward pressure on prices. Key downstream industries such as rubber, paints, and coatings sustained steady demand throughout the quarter. However, demand in the paints and coatings sector was somewhat moderate, influenced by seasonal fluctuations, with peak construction activities driving higher demand.
Supply-side challenges, including raw material shortages, transportation delays, and logistical disruptions, further exacerbated the pricing volatility. These issues created a supply bottleneck that strained availability, contributing to the rising costs of Zinc Oxide. Despite these disruptions, the resilient consumption from sectors like construction helped maintain the upward pricing trend, balancing out some of the supply constraints.
The USA, in particular, saw the most significant price increases during this period. A steady rise in prices throughout the quarter reflected the broader North American market’s bullish sentiment. This price uptrend from the previous quarter demonstrates the persistence of supply challenges and the strong demand from industrial sectors, resulting in sustained price growth across the region.
APAC
In Q3 2024, the Zinc Oxide market in the Asia-Pacific (APAC) region experienced a notable price surge, driven by a combination of factors. Supply shortages, compounded by severe weather conditions and logistical bottlenecks, played a key role in this upward trend. Demand from downstream industries like rubber, paints, and coatings remained steady overall, though demand in the paints and coatings sector was notably moderate due to the impact of the monsoon season. The heavy rains hampered construction activities and caused logistical delays, stalling ongoing projects, and discouraging new ones, which weakened demand from domestic buyers and major Asian markets, especially China. Despite this weak demand, prices surged due to persistent supply constraints caused by adverse weather and port congestions across the region. Port congestion further worsened the supply chain issues, creating a bullish market sentiment and putting additional upward pressure on prices. India saw the most significant price fluctuations within the APAC region. Throughout the quarter, the country faced consistent price increases as industrial demand remained strong despite supply challenges. In August, Zinc Oxide Ex-Vadodara prices rose by 2%, reflecting tight supply conditions, although prices stabilized by the end of the quarter. Overall, Zinc Oxide market displayed a 3% price increase compared to the previous quarter, reinforcing the ongoing upward pricing trajectory.
Europe
In Q3 2024, Zinc Oxide prices in Europe saw a significant increase, driven by a combination of supply constraints and rising demand. The market dynamics during this period were shaped by a complex interplay between these factors, leading to an upward price trend. Supply disruptions played a crucial role, with production cuts at key manufacturing facilities and tightening global raw material supply chains contributing to shortages across the region. These supply-side challenges were further exacerbated by logistical bottlenecks and transportation delays, limiting the availability of Zinc Oxide in the market. On the demand side, industries like rubber, paints, and coatings exhibited varying levels of activity throughout the quarter. Demand from the rubber sector remained relatively strong, while the paints and coatings industry showed moderate demand, influenced by seasonal factors and the general economic environment. Despite these fluctuations, the overall demand for Zinc Oxide was robust enough to outpace the constrained supply. The combination of strong demand and ongoing supply disruptions led to a price increase compared to the previous quarter, marking a positive trend in the European market. The consistent rise in prices throughout the quarter reflects the underlying supply-demand imbalance and points to a persistently bullish pricing environment for Zinc Oxide in the region.
FAQs
1. What is the current price trend of Zinc Oxide across major regions?
In July 2025, Zinc Oxide prices showed mixed movements globally. APAC prices remained rangebound, weighed down by sluggish downstream demand in China despite steady supply conditions. In North America, prices firmed slightly as rising feedstock and freight costs outweighed tepid tire-sector demand. Europe witnessed marginal price increases driven by supply-side inflation, even as end-use consumption stayed largely subdued.
2. Which companies are the major producers of Zinc Oxide globally?
Globally, leading Zinc Oxide producers include Akrochem Corporation, Zinc Oxide LLC, White Oxid Shokohieh Company, Hakusui Tech and Zochem Inc.
3. Which downstream industries are driving Zinc Oxide demand recovery?
The global Zinc Oxide market is seeing selective demand recovery. The automotive tire sector remains under pressure globally, but construction-linked applications like ceramics, paints, and adhesives are providing consumption support, especially in Europe and North America. In APAC, seasonal upticks in ceramics and minor industrial chemicals offered limited relief to demand dynamics.
4. Are international trade flows for Zinc Oxide stabilizing or facing disruptions?
Trade flows remain volatile. In APAC, export momentum is subdued as trade tensions and tariffs dampen overseas orders. North American imports faced cost inflation due to transpacific freight hikes, while European buyers contended with shipping delays and rising logistics expenses. Overall, supply chains remain strained, with cost and regulatory pressures influencing trade volumes and pricing.
