For the Quarter Ending September 2025
North America
• In USA, the Zinc Oxide Price Index rose 0.78% quarter-over-quarter, driven by higher feedstock and freight costs.
• The average price of Zinc Oxide for the quarter was approximately USD 3261.33/MT, reflecting mixed dynamics.
• Zinc Oxide Spot Price remained supported by tightened ingot availability, boosting Zinc Oxide Price Index.
• Zinc Oxide Production Cost Trend increased with zinc ingot and logistics cost pressures compressing margins.
• Zinc Oxide Demand Outlook shows automotive offtake supporting volumes while construction weakness limits broader recovery.
• Zinc Oxide Price Forecast anticipates modest sequential gains from restocking and hurricane season supply disruptions.
• Elevated freight and higher export offer narrowed arbitrage, supporting the Zinc Oxide Price Index domestically.
• Planned maintenance and seasonal restocking may tighten availability, influencing Zinc Oxide Spot Price and transactions.
Why did the price of Zinc Oxide change in September 2025 in North America?
• Rising zinc ingot prices increased production costs, transmitting upstream pressure into downstream Zinc Oxide pricing.
• Higher Gulf Coast freight rates and port congestion elevated landed import costs, reducing import competitiveness.
• Divergent demand patterns, automotive offtake resilience offset construction softness, creating mixed pressure on Price Index.
APAC
• In China, the Zinc Oxide Price Index rose by 0.67% quarter-over-quarter, reflecting balanced supply and weak downstream demand.
• The average price of Zinc Oxide for the quarter was approximately USD 2672.67/MT, reflecting limited market movement.
• Zinc Oxide Spot Price remained narrow, supported by stable feedstock costs and disciplined producer inventory management.
• Zinc Oxide Price Forecast anticipates modest gains as seasonal tire sector restocking and logistical constraints affect Price Index.
• Zinc Oxide Production Cost Trend benefited from lower zinc ingot prices, alleviating upward pressure on the domestic Price Index.
• Zinc Oxide Demand Outlook remains subdued with weak exports, seasonal tire lull, and cautious purchases from converters.
• Inventory builds and muted export demand kept offers stable, constraining Zinc Oxide Spot Price movement in APAC regions.
• Major producer operations ran uninterrupted, with disciplined output and discount incentives shaping the near-term Price Index.
Why did the price of Zinc Oxide change in September 2025 in APAC?
• Feedstock zinc ingot cost decline reduced production pressure, softening upward price drivers despite steady operations.
• Muted export orders and high importer stocks limited restocking, keeping Zinc Oxide Price Index subdued in September.
• Logistical strains and pre-holiday freight congestion raised delivered costs, slightly tightening availability and supporting modest price uptick.
Europe
• In Europe, the Zinc Oxide Price Index fell quarter-over-quarter in Q3 2025, reflecting subdued demand from rubber compounding and ceramics industries.
• Zinc Oxide Spot Price movements were range-bound, with minor week-to-week fluctuations driven by seasonal buying in paints and coatings.
• The Zinc Oxide Price Forecast for Q4 2025 suggests continued softness unless demand rebounds in tire manufacturing and personal care sectors.
• The Zinc Oxide Production Cost Trend remained stable, as zinc metal feedstock prices showed minimal volatility and energy costs normalized across European refining hubs.
• The Zinc Oxide Demand Outlook remains cautious, with steady consumption in pharmaceuticals, cosmetics, agriculture, and paints, but weaker momentum in rubber, ceramics, and glass segments.
• The Zinc Oxide Price Index reflects balanced inventories and restrained procurement behavior, especially in industrial applications.
• Inventory levels across Western Europe remained elevated, limiting bulk-buying activity and supporting disciplined pricing.
• Regulatory compliance in cosmetics and pharma continues to support demand for high-purity zinc oxide grades, while substitution trends in rubber and ceramics are moderating growth.
Why did the price of Zinc Oxide change in September 2025 in Europe?
• Demand from rubber and ceramics sectors remained weak, contributing to a modest decline in the Zinc Oxide Price Index.
• Feedstock costs for zinc metal remained stable but reduced industrial activity and cautious restocking behavior softened spot prices.
• Logistics and freight rates normalized, easing distribution costs and contributing to the September price dip.
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.
