For the Quarter Ending September 2024
North America
The pharmaceutical grade zinc powder market in North America demonstrated notable momentum during Q3 2024, with the United States manifesting as the key center of market fluctuations. Price negotiations appreciated from $3050/MT to $3200/MT CFR California throughout July to September 2024. This market evolution reflects an intricate interplay of industry variables and broader economic indicators.
Enhanced consumption patterns from domestic pharmaceutical, nutraceutical, and personal care industries emerged as principal market drivers, while logistical impediments created supply-side pressures. The market exhibited exceptional adaptability despite facing multiple operational challenges, including maritime congestion, heightened shipping expenses, and ongoing distribution network disruptions. The situation was further intensified by price fluctuations in China's market, a dominant pharmaceutical grade zinc powder supplier, generating cascading effects across the American pharmaceutical sector.
The steady price strengthening, marked by a $340/MT gain across the quarter, reflects robust market fundamentals and sustained developmental impetus. This trajectory resonates with broader regional patterns, demonstrating the North American pharmaceutical grade zinc powder market's inherent stability despite ongoing supply chain impediments. The synthesis of amplified regional demand, worldwide supply mechanics, and logistical hurdles has engineered a sophisticated yet fundamentally robust pricing landscape.
APAC
The pharmaceutical grade zinc powder landscape in Asia-Pacific exhibited remarkable pricing dynamics in Q3 2024, marked by a distinctive upward movement. The market demonstrated notable price progression, with export valuations advancing from $2780/MT to $3095/MT EXW Shanghai between July and September 2024.
This market strengthening was supported by diverse operational factors and market fundamentals. Enhancement demand dynamics were characterized by consistent procurement from pharmaceutical and supplement manufacturers, while supply elements were influenced by mounting production expenditures, including raw material costs and operational overheads. The confluence of increased production capacity and logistical constraints, especially port bottlenecks, generated supply-demand disparities supporting price appreciation.
Market resilience was evidenced through sustained buyer engagement and consistent order patterns. These demand indicators, combined with operational hurdles including freight expenses and supply chain intricacies, enabled industry participants to sustain healthy margins. China's domestic market remained instrumental in establishing regional price trends, influenced by both international procurement patterns and domestic consumption dynamics. The relationship between production capabilities and logistical impediments reinforced the market's upward trajectory.
Europe
The European pharmaceutical grade zinc powder market demonstrated significant upward momentum throughout Q3 2024, with Germany's market serving as the region's primary price indicator. The quarter witnessed sustained price appreciation, reflecting evolving market dynamics and strengthening fundamentals across the European landscape.
Supply constraints emerged as a crucial market driver, particularly from Asian manufacturing hubs, where production limitations and logistics challenges created availability pressures. These supply-side dynamics, coupled with robust regional demand, fostered an environment conducive to price appreciation. The pharmaceutical and supplement sectors maintained steady procurement patterns, providing consistent market support. Germany's market trends established reliable benchmarks for broader European pricing dynamics, with clear seasonal patterns emerging across major trading hubs. The market's upward trajectory persisted despite operational hurdles, highlighting the sector's underlying strength. Other key European markets, including France and Italy, demonstrated strong price correlations with German movements.
The interplay between tightening supply conditions, steady sectoral demand, and regional market forces created a robust pricing environment. This convergence of factors supported sustained market development while maintaining fundamental equilibrium across the European region.
For the Quarter Ending June 2024
North America
In Q2 2024, the Zinc market in North America experienced a consistent decline in prices, largely driven by several significant factors. Market saturation, aggressive pricing strategies by producers, and lackluster demand from downstream industries have collectively exerted downward pressure on Zinc prices. Disruptions in global trade and increased freight costs have further compounded the supply chain challenges, contributing to bearish market sentiment. Moreover, substantial inventory reserves and reduced international prices facilitated more economical imports, exacerbating the price decline.
Focusing on the USA, where the most notable price changes occurred, the overall trend has been markedly negative. The market's seasonal dynamics and the correlation between lower demand and excessive supply have perpetuated a cycle of decreasing prices. Compared to Q1 2024, the prices dropped by 10%, underscoring a persistent downward trend within the year.
By the end of Q2 2024, the price of Pharma Grade Zinc Powder CFR California settled at USD 3000 per metric ton. This ongoing decline highlights the challenging pricing environment, characterized by negative sentiment and limited prospects for immediate recovery. The continuous price reductions point to a highly competitive and strained market, where the balance between supply and demand remains precarious.
APAC
In Q2 2024, the Zinc market in the APAC region has been characterized by a consistent decline in prices, driven by several critical factors. The quarter experienced a notable decrease in overall demand, both domestically and internationally, exacerbated by ample supply conditions and heightened production levels despite tepid market interest. These conditions created an oversupply scenario, further pressuring prices downward. Additionally, disruptions in global logistics and elevated shipping costs have compounded market challenges, making it difficult for buyers to commit to large orders amidst economic uncertainties. The culmination of these factors has painted a bleak picture for the zinc market throughout the quarter.
Focusing on China, which has seen the most significant price changes within the APAC region, the overall trends mirrored those observed regionally but with more pronounced effects. The price of Zinc Powder (Pharma Grade) FOB Qingdao concluded the quarter at USD 2740/MT, reflecting a negative sentiment in the pricing environment. Seasonality factors and supply-demand imbalances played a pivotal role in these changes. The first half of the quarter saw a steeper decline compared to the latter half, marking an overall 8% reduction within the quarter, indicating a persistent negative trend.
In summary, the pricing environment for Zinc in Q2 2024 has been overwhelmingly negative, with consistent downward pressure on prices due to oversupply, weak demand, and logistical challenges. The market sentiment remains pessimistic, highlighting the ongoing struggles within the industry to balance supply and demand effectively.
Europe
The pharma grade zinc powder market in Europe largely mirrored the dynamics of both Chinese and the US market in Q2 2024, experiencing a notable downtrend driven by several critical factors. The quarter was characterized by a confluence of declining demand from key sectors such as pharmaceuticals and nutraceuticals, coupled with hampered supply chain conditions. The availability of zinc powder stockpiles, especially from major Asian exporters, led to competitive pricing pressures. Additionally, the easing of global trade disruptions and reduced freight costs this quarter contributed to the downward price adjustments. Economic factors, including a slight recovery in inflation and improved consumer confidence, partially offset the downward momentum but were not sufficient to reverse the overall trend.
Germany, the epicenter of the price volatility, saw a significant shift in its pharmaceutical grade zinc powder market. Seasonal factors, such as fluctuating demand patterns and ample inventory levels, exacerbated the price decrease. The pricing environment in Q2 2024 reflected a predominantly negative sentiment, driven by an overabundance of supply and stabilizing trade conditions, overshadowing any minor demand recovery.
This downturn was further influenced by the easing of supply chain bottlenecks that had previously constrained the market. As logistics improved and production capabilities expanded, the increased availability of pharmaceutical grade zinc powder intensified competition among suppliers. The quarter also saw shifts in industrial demand, with changing manufacturing needs and potentially reduced usage in certain pharmaceutical applications contributing to the softer demand.
The market dynamics observed during this period had varying impacts across the industry. While challenging for zinc powder suppliers, the lower prices potentially benefited pharmaceutical manufacturers and other downstream industries relying on zinc powder as an input. However, the prolonged price pressure raised questions about its long-term impact on research and development investments in the zinc processing sector.
Overall, Q2 2024 marked a period of significant adjustment in the European pharmaceutical grade zinc powder market, with the interplay of supply, demand, and broader economic factors resulting in a notably bearish quarter for the industry.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the pricing of pharma-grade Zinc Powder in the North American market exhibited a diverse pattern. Several factors contributed to this volatility, resulting in a nuanced shift in pricing trends. Specifically, in the USA, prices initially increased in January but experienced a subsequent decline in both February and March. After reaching $3640/mt in January, the price of pharma-grade Zinc Powder decreased to $3410/mt CFR California by March. Market dynamics were influenced by changing demand, product availability, escalating freight costs, and diminished imports from Asia. To tackle these challenges, U.S. authorities teamed up with industry stakeholders to enhance real-time monitoring of freight movements, with a particular focus on nutraceutical shipments from China.
The end of 2023 was marked by disruptions in supply chains and trade due to security concerns in the Red Sea, resulting in significant spikes in freight charges. These disruptions affected trade routes, leading to port congestion in the U.S. and disruptions in the Panama Canal, thereby impacting commodity prices. During the Chinese Lunar New Year holidays in mid-February, shipments were temporarily halted. Despite anticipating an uptick in demand for nutraceuticals, including Zinc Powder, following the post-holiday market recovery in China, the expected increase in the U.S. did not materialize as projected. Nonetheless, demand in the U.S. remained consistent until the latter part of Q1, buoyed by fresh inventory from local suppliers.
With an abundance of supply available, U.S. suppliers adjusted their price quotes and narrowed their profit margins in March. The declining prices in March were influenced by reduced demand from the pharmaceutical and nutraceutical sectors, along with declining freight charges. This reduced demand coincided with an oversupply of Zinc Powder from domestic sources, further complicating the market dynamics. Moreover, waning interest from Asian markets, particularly China, also contributed to the downward pressure on prices.
APAC
During the first quarter of 2024, the APAC region experienced a significant decline in pharmaceutical grade Zinc powder pricing. Several factors contributed to this market movement, including a supply-demand imbalance, reduced off-takes from key sectors like pharmaceuticals and nutraceuticals, and limited inquiries from both local and international markets. China, being a significant player in the Zinc market, witnessed notable price fluctuations. The overall sentiment in China was negative, with prices dropping by 8% compared to the previous quarter. Specifically, the price of pharma-grade Zinc Powder in China decreased from $3455 per metric ton in January to $2490 per metric ton EXW Shanghai by March, marking a decline of approximately 24%.
These price shifts underscore the prevailing bearish sentiment and the broader downward pricing trend observed in the region. The first quarter of 2024 presented a challenging market landscape for Zinc, characterized by subdued demand and abundant supply, which contributed to the downward pressure on prices. In China, which is the largest market for Zinc Powder in the APAC region, the price decline was particularly significant. The ripple effects of this price decline were also evident in other nations that import the commodity from China, further highlighting the interconnectedness of the regional Zinc market.
Europe
During the first quarter of 2024, the Zinc Powder market in Europe, particularly in Germany, displayed pricing trends that echoed those observed in the US and China, with prices declining consistently throughout the quarter. The European economy encountered several uncertainties during this period, including fluctuating energy costs and the implementation of interest rate hikes, which created a delicate market environment for Zinc Powder. These challenges complicated efforts to stabilize prices within the region.
Until mid-February, multiple factors influenced the Zinc Powder prices in Germany. The rising import costs from China, amplified by disruptions in the Red Sea and the Chinese New Year celebrations, added pressure to prices and resulted in decreased demand. Additionally, currency exchange rate fluctuations, such as the depreciation of the Euro against the USD, exacerbated the financial difficulties faced by German importers.
In summary, the Zinc Powder market in Germany was influenced by a confluence of factors, including inflationary pressures, federal taxes, supply chain disruptions, and escalating energy costs. These complex challenges contributed to the overall decline in Zinc Powder prices and created a challenging operational landscape for market participants in the region.
For the Quarter Ending December 2023
North America:
In the fourth quarter of 2023, the Zinc market in North America faced a decline, notably reflected in a 5% drop in Zinc Powder prices compared to the preceding quarter. Several key factors influenced this downturn, including decreased demand from end-users, elevated inventory levels, and weakened consumer confidence stemming from rising interest rates. The US Zinc Powder market experienced the most pronounced price fluctuations, characterized by instability due to subdued consumption and uncertain demand-supply dynamics.
Global trends, particularly in China, drove an upward trajectory in Zinc Powder prices worldwide, contributing to price hikes in the United States towards the quarter's end. Despite the resilience of the US labor market, marked by job gains and a reduction in unemployment rates, concerns over rising interest rates and inflationary pressures dampened consumer sentiment, impacting sectors like the dietary supplement industry. The quarter began with Zinc Powder prices at $3,600/MT and concluded at $3,540/MT CFR California, indicative of an overall decline. Import levels during Q4 2023 surpassed those of the same period in 2022, suggesting that retailers may have completed destocking and were preparing for the holiday season in December. The US economy's performance in 2023 was deemed noteworthy by quarter's end, despite apprehensions regarding inflation control and potential job losses. Successfully averting recession, the US economy showcased accelerated growth. In the final weeks of December, heightened consumer demand in the US, coupled with increased freight charges possibly influenced by external conflicts, drove upward price movements in the Zinc Powder industry.
APAC:
During the fourth quarter of 2023, the Zinc Powder market in the Asia-Pacific region displayed a varied trend, characterized by fluctuations in prices. Prices surged to $3,410/mt in October, then declined to $3,320/mt in November, before rising again to $3,390/mt in December. These fluctuations stemmed from a market imbalance caused by fluctuating demand from the pharmaceutical and nutraceutical industries. In contrast, India's nutraceutical market expanded due to improved economic conditions, heightened production levels, and increased new business inflows. Despite increased production, China witnessed notable price decreases during the mid-quarter period, attributed to sluggish demand both locally and globally. The diminishing interest in Zinc Powder from China's pharmaceutical and nutraceutical sectors was underscored by a lack of fresh inquiries from overseas markets in the initial half of the quarter. However, December brought attention to China's economy with improvements in the Purchasing Managers' Index (PMI) and increased consumer confidence, accompanied by a gradual price increase. Throughout the year, China's nutraceutical market experienced mixed outcomes, with certain product categories declining while others showed signs of recovery.
Europe:
During the fourth quarter of 2023, mirroring the trend observed in the US market, the European Zinc Powder market faced a decline in prices. Abundant supply levels had a negative impact on the market, as domestic businesses maintained substantial inventories to cater to demand and address concerns of potential shortages ahead of the December holiday season. However, prices did gain momentum towards the end of the quarter. Combinedly, diminished end-user demand and ample availability of Zinc Powder in the domestic market were significant factors contributing to the price reduction in the first half influenced by substantial stockpiles held by domestic companies, despite minimal shifts in market dynamics. A key driver of these market dynamics was China, a major exporter that reduced the price of Zinc Powder. As a result, German importers benefited from lower prices when sourcing Zinc Powder supplements, leading to a corresponding decrease in prices within the local market. Additionally, the absence of fresh inquiries from end-user industries such as nutraceuticals and pharmaceuticals nationwide prompted local sellers to offer the product at relatively reduced prices.
