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.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Zinc Oxide market experienced a notable increase in prices, driven primarily by supply chain disruptions and augmented demand dynamics. The quarter saw significant influences on market prices, including logistical challenges, elevated freight costs, and fluctuating metal supply due to global geopolitical tensions. The interplay of these factors created a complex pricing environment characterized by tight supply chains and a resilient demand structure.
Exclusively within the USA, the Zinc Oxide market depicted pronounced price volatility, reflecting the highest price changes in the region. The overall trends indicated a robust market sentiment with seasonality effects contributing to the fluctuations. The correlation in price changes highlighted the impact of limited supply and consistent demand across various industrial sectors, notably the rubber and coatings industries.
The consistent rise was largely due to constrained supply channels and increased demand, reflecting a bullish market sentiment. This period has proven favorable for stakeholders, marking a significant phase of price elevation in the Zinc Oxide market.
APAC
In Q2 2024, Zinc Oxide prices in the APAC region experienced a notable upward trend, driven primarily by strong domestic demand and escalating costs of feedstock Zinc Ingot. The manufacturing sector's resurgence, marked by a surge in new orders and production levels, has further bolstered prices. Additionally, global supply chain disruptions and a slowdown in refined zinc production in major manufacturing hubs have contributed to the price increase. In this quarter, the sentiment across the APAC region has been predominantly positive, underpinned by robust economic activities and optimism for sustained demand growth. Focusing on India, the country has seen the maximum price changes in Q2 2024, with a significant increase driven by similar factors but more pronounced due to its dynamic manufacturing sector. The overall trends in India indicate a consistent price rise, influenced by high demand from downstream sectors like rubber and coatings, and a stable gap between supply and demand. The seasonality has also played a role, with favorable weather conditions boosting industrial activities. The latest quarter-ending price for Zinc Oxide (Rubber Grade) Ex-Vadodara in India stands at USD 2519/MT, reinforcing the bullish market conditions. This pricing environment has been predominantly positive, characterized by increasing demand, stable supply conditions, and manufacturers' optimism about future business prospects.
Europe
The second quarter of 2024 presented a dynamic landscape for Zinc Oxide pricing in the European market, marked by an interplay of supply and demand factors. The quarter witnessed an overall positive sentiment, driven by a variety of influences. A notable rise in global market prices and an increase in demand from critical industries like rubber and coatings were significant drivers. Additionally, geopolitical tensions, notably the imposition of sanctions on Russian metal supplies and disruptions in freight logistics, further compounded supply constraints, contributing to higher prices. Despite lingering economic challenges, the moderately increased demand for materials led to an uptick in Zinc Oxide prices. Improved supplier delivery times and the increased availability of subcontractors also contributed to stabilizing the market, helping to mitigate any potential supply chain disruptions. The German market reflected an overarching trend of cautious optimism, driven by a seasonal uptick in construction activities during the warmer months. The market also benefitted from restocking efforts by merchants, which temporarily boosted demand. Moreover, the regulatory environment, though stringent, facilitated a clearer pathway for construction projects, thereby supporting increased consumption of Zinc Oxide. Despite the stable quarter-over-quarter change, the overall market sentiment in Germany was positive, driven by a consistent alignment of demand factors and a strategic response to supply chain disruptions. The increasing prices reflected a market environment that, although fluctuating, trended positively in the context of broader economic and industrial dynamics.
