In November 2024, the Zinc Oxide market in Asia displayed opposing trends, with prices declining in China and rising in India. This divergence highlights the influence of regional demand dynamics, geopolitical uncertainties, and supply chain inefficiencies. As a significant producer and exporter, China faced weaker domestic and international demand, particularly from industries like rubber and ceramics, which struggled amidst economic headwinds. This led to a 2% drop in Zinc Oxide FOB Qingdao prices. Conversely, India emerged as a growing market, fueled by resilient downstream demand in sectors such as paints, cosmetics, and rubber. The Indian market also benefited from increased export opportunities as buyers sought alternatives to Chinese supplies amid trade disruptions. Reflecting this trend, the price of Zinc Oxide (Rubber grade) Ex-Vadodara rose by 1.8%. The contrasting pricing trends underscore the broader impact of supply chain bottlenecks and shifting trade flows in the Asian Zinc Oxide market.

The demand for Zinc Oxide in China has weakened due to challenges in downstream sectors such as rubber, ceramics, and paints, which have experienced declining orders amidst a slowing manufacturing landscape. Global economic uncertainties and reduced consumer spending have further dampened the performance of Chinese industries dependent on the product. Further, the automotive sector in China showed positive momentum, as reflected in data from the China Association of Automobile Manufacturers (CAAM), which reported an 8.6% month-on-month increase in vehicle sales for November and an 11.7% year-on-year growth. However, despite this uptick in sales in the automotive industry, Zinc Oxide inventory levels remained elevated in the regional market, exerting downward pressure on prices overall. In contrast, India’s Zinc Oxide market remains firm, buoyed by a recovery in domestic manufacturing and consistent demand across industries like rubber, cosmetics, and paints. This sustained demand underscores India’s growing significance as a key market for Zinc Oxide, benefiting from both domestic consumption and export opportunities.

Meanwhile, logistical constraints impacted the regional Zinc Oxide market in November 2024. In China, prolonged port congestion at terminals like Shanghai and Shenzhen led to shipment delays, higher storage costs, and an oversupply, driving prices down. Additionally, the Drewry Intra-Asia Container Index (IACI) increased by 4% in late November, driven by higher demand ahead of the Christmas season. These factors collectively influenced Zinc Oxide prices and supply dynamics across Asia.

According to ChemAnalyst, the Zinc Oxide market in Asia is expected to experience a downward price trend by the end of 2024. This anticipated decline is driven by a combination of factors, primarily subdued demand from key downstream industries. Further, the region's Zinc Oxide market is facing an oversupply situation, with manufacturers ramping up production amid a competitive landscape. This combination of lower downstream demand and ample supply is likely to drive prices downward, creating a challenging environment for producers and suppliers across the market.