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.
For the Quarter Ending March 2024
North America
The North American region witnessed a positive pricing environment for Zinc Oxide during Q1 2024. The market experienced a steady increase in prices, driven by various factors. The overall trend for Zinc Oxide prices in the region was influenced by factors such as tightening supply, declining mining rates, and increased industrial demand.
These factors created a bullish sentiment in the market. Examining the specific situation in the USA, which saw the most significant price changes, it is evident that the market followed a similar upward trajectory. The price of feedstock Zinc Ingot in the USA increased by 2% compared to the previous quarter which influenced the Zinc Oxide prices.
Seasonality played a role in the price changes, as the market experienced a winter dullness in the construction sector, impacting demand. However, the market dynamics improved towards the end of the quarter, with expectations of increased demand from the domestic downstream sector. This, along with tightening supply and rising industrial demand, contributed to the overall positive pricing environment. In conclusion, the pricing environment for Zinc Oxide in the North American region, particularly in the USA, was positive during Q1 2024.
APAC
In Q1 2024, Zinc Oxide prices in the APAC region witnessed a significant rising trend. One of the key factors impacting market prices was the demand from downstream industries, such as rubber and coating. The product faced robust demand, driven by positive market sentiment and increased economic activities. Another factor influencing prices was the cost of the primary feedstock, Zinc Ingot. Fluctuations in the cost of Zinc Ingot had a direct impact on Zinc Oxide prices, with increases in the cost of feedstock leading to price hikes for the final product. India, in particular, experienced significant price changes during the quarter. Zinc Oxide prices in India saw a notable increase at the start of the quarter as the prices surged by 9%, driven by robust domestic demand and rising costs of Zinc Ingot. Overall, the pricing environment for Zinc Oxide in Q1 2024 can be described as volatile, with prices fluctuating based on demand and feedstock costs. However, the market sentiment remained positive, with periods of strong demand and an optimistic outlook for future demand. Thus, the price of Zinc Oxide (Rubber grade) Ex-Vadodara in India surged by 1% by the quarter end.
EUROPE
The first quarter of 2024 posed considerable challenges for Zinc Oxide pricing across the Europe region, marked by notable factors influencing market dynamics. Overall, the market witnessed a downward trajectory, with prices showing a decline compared to the corresponding period in the previous year. Among European countries, Germany, in particular, witnessed a significant price fluctuation. Various factors contributed to market conditions in Germany, including a slowdown in both local and international production, resulting in an oversupply of Zinc Oxide. The economic downturn in Germany exacerbated the negative pricing atmosphere. This decline reflects ongoing market trends for Zinc Oxide in Germany and apprehensions among industry stakeholders regarding the broader economic climate. To summarize, the first quarter of 2024 was characterized by a downward trend in Zinc Oxide prices across Europe, particularly notable in Germany. Surplus supply, economic downturn, and prevailing market dynamics played pivotal roles in shaping the pricing environment, which remained predominantly negative and stable, with substantial declines compared to previous periods.
For the Quarter Ending December 2023
North America
The North American Zinc Oxide market encountered fluctuations in the fourth quarter of 2023 due to varying prices of feedstock Zinc Ingot and shifts in market demand. Initially, demand experienced a mild decline, particularly in the construction and automotive sectors, leading to decreased purchasing activity and lower product orders.
Despite a steady supply of Zinc Oxide from traders, the market witnessed an overall moderation in availability. This surplus in supply, coupled with subdued demand, exerted downward pressure on prices during this period. However, a positive shift occurred in November when demand rebounded, primarily driven by increased requirements from the rubber and coating industries before the holiday season.
This resurgence in demand contributed to a subsequent upward trajectory in prices. Additionally, a constrained supply situation further influenced pricing dynamics as sellers responded to the tight supply conditions by raising their prices across the region. Moreover, the price of Zinc Oxide witnessed a marginal decline by the end of the quarter as the supply remained ample and the feedstock Zinc Ingot price lowered by this month.
APAC
In the APAC region during the fourth quarter of 2023, Zinc Oxide prices initially exhibited a bullish trend, propelled by a substantial increase in the costs of feedstock Zinc Ingot. This surge in prices was further heightened by robust demand from downstream industries, particularly in the rubber and coating sectors. The region concurrently faced a tight supply situation, with inventories falling below demand levels, prompting sellers to implement price hikes. However, a reversal in this trend occurred in December 2023, as Zinc Oxide prices experienced a decline. This shift was primarily attributed to a reduction in the costs of the feedstock, Zinc Ingot, coupled with an overall sluggish demand. The product encountered a subdued demand, especially from downstream industries, following the festival season. The year-end destocking activities further contributed to the downward price trend. Regional inventories witnessed an increase due to muted inquiries, prompting sellers to respond to market dynamics by adjusting prices downward. In the context of India, which witnessed notable fluctuations in the APAC region, the recorded price of Zinc Oxide (Rubber Grade) Ex-Vadodara was USD 1985/MT, highlighting the significant price changes in the market during this period.
Europe
The European Zinc Oxide market experienced fluctuations during the fourth quarter of 2023, primarily driven by variations in the prices of feedstock Zinc Ingot and shifts in market demand. Initially, there was a decline in demand, particularly in the construction and automotive sectors, leading to reduced purchasing activity and diminished product orders. Despite a consistent supply of Zinc Oxide from traders, the overall availability in the market saw moderation. The surplus in supply, coupled with subdued demand, created a downward pressure on prices during this period. However, a positive turnaround took place in November, marked by a rebound in demand. This resurgence was chiefly fueled by heightened requirements from the rubber and coating industries in anticipation of the holiday season. The increased demand contributed to an upward trajectory in prices. Furthermore, constrained supply conditions played a role in shaping pricing dynamics, prompting sellers to adjust their prices upward across the region. Towards the end of the quarter, the price of Zinc Oxide experienced a marginal decline. This was attributed to ample supply and a decrease in the price of feedstock Zinc Ingot by the end of the month, indicating a balancing act between supply and cost factors in the European market.
For the Quarter Ending September 2023
North America
The price of Zinc Oxide exhibited a gradual declining trend during the first two months of the third quarter but rose suddenly due to a shortage of the product. In July and August, the contraction was caused by a monthly decline in new orders as domestic and foreign demand remained weak. Despite the sharp fall in performance and the decrease in the number of new orders, companies reported an increase in employment at the beginning of the third quarter. The downstream coating industry's performance did not change significantly, further limiting the cost of the product. Towards the end of the quarter, there was a slight improvement in product demand, but the available supply was insufficient to meet domestic requirements. Consequently, domestic manufacturers raised prices in response to increased demand and market conditions. Furthermore, the positive trend observed in the domestic market was also influenced by the impact of increased interest rates. The extended period of declining availability had depleted product stocks, but this month witnessed an uptick in demand, prompting the need to replenish product supplies in the market. Additionally, the price of crude oil influenced the production cost of Zinc Oxide.
Asia
In the third quarter of 2023, the pricing of Zinc Oxide in the Indian domestic market displayed a fluctuating pattern. The cost of its primary raw material, Zinc metal, decreased by approximately 2.5% in the Indian market. This decline in price was partly a response to reduced demand from the downstream Rubber and Coating industry, which was grappling with inflationary pressures. Furthermore, there was a decline in imports of Zinc Oxide from overseas sources, which further influenced the pricing trend for the product. However, in the middle of the quarter, there was a notable 8% monthly price increase. This increase was primarily attributed to the higher prices of Zinc Ingot, driven by robust demand. The downstream rubber and coating industry continued to exhibit strong demand despite limited supply, prompting producers to raise their prices. Additionally, there was an increased demand for Zinc as a feedstock in the production of galvanized steel, propelled by infrastructure development and the growth of the automotive sector. These factors contributed to the rising prices of Zinc Oxide. Towards the end of the quarter, there was a price decline, as domestic merchants worked through their existing stockpiles. This led to a decrease in new orders and helped control the cost of the product.
Europe
In the third quarter of 2023, Zinc Oxide prices experienced fluctuations within the Eurozone, but the product's overall performance remained weak during this period. The notable drop in prices, as observed among producers, can be attributed to increased competitive pressures and a reduction in production costs, which had reached historically low levels. Reports suggest that many customers have adopted a cautious, wait-and-see approach, and are actively seeking to decrease their inventory levels. The presence of high interest rates and inflation in Germany and the broader Eurozone has had a dampening effect on demand, particularly in industries such as rubber, paint and coatings, and construction. Data indicates that destocking has become a prevalent trend, with companies optimizing their inventories due to reduced workloads and improved material availability. The decreased demand for materials is evident in the continuous, six-month improvement in vendor delivery times, as the pressure on supply chains has eased. New export orders experienced a significant decline, primarily due to reduced sales across Europe. A similar trend was observed in the UK market during the third quarter of 2023.
For the Quarter Ending June 2023
USA
In the second quarter of 2023, the price of Zinc Oxide decreased indefinitely amid declining demand from the downstream automotive industry. The downstream Automotive and construction industry faced sluggish market sentiment because of the seasonal decline as the arrival of the monsoon affected the construction activity. The downstream automotive industry lacked demand from the consumer's side as the depriving economic condition halted the purchasing ability of residents for vehicles. Furthermore, the decreased consumption of natural gas and fuel due to rising inflation caused a decline in fuel prices. This plunged the energy cost for producing Zinc Ignot in the local smelting mills and declined the premium cost of Zinc ingot across the US spot market. The ripple effect of uncertain economic conditions and lack of downstream demand provoked the buyers to shy away from placing large orders, and the local Zinc Smelting units were incited to decrease the offer price of Zinc Ingot in the US spot market. Meanwhile, economic instability was observed in Q2, majorly due to the debt crisis caused by the downfall of major banks in the USA. The rising inflation across the country and global market created a pessimistic Zinc Oxide market. In the meantime, the inventory level of the upstream Zinc remained at a higher edge as the mining activity rushed amid Terramin Australia Limited received the permit for the Tala Hamza Zinc Project, which increased the supply quantity. Additionally, Sibanye Stillwater, a major Gold-Zinc mining company in South Africa, has acquired the New Century Zinc mine in Queensland, which uplifted the extraction rate in the global market. Orion Minerals, a global metal exploring company, also increased the extraction rate by signing several new deals for mining upliftment.
Asia
During the second quarter of 2023, the price of Zinc Oxide in the Asian market experienced a bearish trend, primarily influenced by subdued demand from the downstream automobile industry. Over the last two months of the quarter, the price of Zinc Oxide witnessed consecutive declines of approximately 25% and 11%, respectively, in the Indian market. The weakened demand was largely attributed to global inflationary pressures, prompting consumers to prioritize their spending and focus on essential products. However, the feedstock Zinc Ingot supply followed an upward trajectory as mining activities saw a surge in overseas nations like Australia and Peru. Notably, Sibanye Stillwater's occupancy of the New Century Zinc Mine in Australia led to an increased extraction rate. Polymetals Resources, a major Australian exploration company, also worked diligently to revive the production line at the Endeavor Zinc-Silver-Lead mine in New South Wales, Australia. Furthermore, the mining operation resumed at the Tala Hamza Zinc Project, as Terramin Australia Limited secured mining permits to commence operations. These augmented mining activities resulted in higher inventory levels of feedstock Zinc and subsequently prompted the Zinc smelting mills to reduce their offer prices for Zinc Ingot. Interestingly, in April 2023, the price of Zinc Oxide exhibited a contrasting increase of approximately 25% in the Indian market. This sudden surge was driven by elevated demand from overseas markets compared to the last month of Q1 2023. The demand dynamics in this specific region contributed to the price surge, despite the bearish trend experienced in other parts of Asia.
Europe
In the second quarter of 2023, the price of European Zinc Oxide experienced a continuous bearish trend, primarily driven by higher inventory levels and declining consumer demands. The German Zinc Oxide market also faced a sluggish sentiment. Moreover, the feedstock Zinc Ingot prices witnessed a decline of approximately 3.5%, 5%, and 6.5% in the European region. This decline can be attributed to increased manufacturing activity in the Glencore Nordenham plant, a prominent Zinc Industry in Germany, which led to higher production rates. In addition to the increased production, the Portovesme plant in Italy initiated its production line, contributing to maintaining higher inventory levels in the region. Furthermore, the global market saw a faster extraction rate of feedstock Zinc due to the acquisition of the New Century Zinc mine in Queensland by Sibanye Stillwater, a major Gold-Zinc mining company in South Africa. This acquisition uplifted the extraction rate, resulting in increased supply in the market. Orion Minerals, a global metal exploring company, also boosted its production rate as two major project signings enhanced their mining process. However, the demand for Zinc Oxide from the downstream rubber industry remained muted. The labor crisis across Europe became a significant concern, directly impacting the downstream rubber industry. Buyers hesitated to place large orders as they sought a clearer view of whether the prices of Zinc Oxide had reached their lowest point.
For the Quarter Ending March 2023
North America
North America saw moderate to low demand for Zinc Oxide during the first quarter of 2023. The market struggled with slow economic activity, even though production remained uninterrupted. Data shows that the rubber, ceramics, and paints sector improved marginally by the end of the quarter but faced inflationary pressure. The FED's frequent price revisions for domestic interest rates remained a major concern for the country's economy and impacted the demand for the product. Labor shortage also remained a matter of concern for the country, which led the Houston port to close for a couple of days.
Asia
The prices of the product increased in the Indian market in March 2023 due to the seasonal demand surge, particularly in downstream industries, leading to a bullish market. The supply of the product remained steady, and expensive imports also influenced the upward trend in prices. In contrast, prices fell in February 2023 due to low demand, despite India's better market performance than many major economies. The supply remained stable, and expensive imports were the driving factor behind the price trend. Downstream industries witnessed a favorable upswing in demand during the recent seasonal period, prompting key players and traders to secure cargo for future months.
Europe
The European economy has been struggling due to the Russia-Ukraine war, which has negatively affected regional economic activities. Data shows that demand for Zinc Oxide from the domestic automotive sector has remained low, while other sectors, such as construction and textiles, have also experienced low demand. Despite some disruptions in the supply chain caused by snow, supplies remained stable to firm, and the narrow demand-supply gap supported a downward price trend. The reduced risk of a recession generated hope for future demand.
For the Quarter Ending December 2022
North America
The market prices of Zinc Oxide showcased mixed sentiments in the North American market during the fourth quarter of 2022. The Zinc Oxide prices increased in October, only to fall back again in the following months. Slumped downstream demand from the rubber vulcanization industry was one of the major factors behind the price drop of Zinc Oxide as the quarter proceeded. Furthermore, the decline in natural gas prices was another crucial reason behind the fall in the Zinc Oxide market. In addition, destocking at the end of the year, when market participants were focused on just emptying their inventories even at a lesser cost, also contributed to the price decrement of Zinc Oxide.
APAC
In the fourth quarter of 2022, the market value of Zinc Oxide showed conflicting feelings in the Asia-Pacific region. Prices for Zinc oxide rose in October before declining once more in the months that followed. As the quarter went on, the downstream demand from the rubber vulcanization industry dropped, which was one of the main reasons behind the sharp fall in Zinc oxide prices. Another significant factor for the drop in the market for Zinc oxide was the decline in natural gas prices. Destocking at the end of the year, when producers were concentrating on simply emptying their stocks even at a lower cost, also played a role in the decrease in Zinc oxide's price.
Europe
The prices of Zinc Oxide in the European market displayed contrasting sentiments in the fourth quarter of 2022. Zinc oxide prices increased in October before again falling in the months that followed. One of the key factors influencing the decline in Zinc oxide pricing during the quarter was a decline in downstream demand from the rubber vulcanization sector. The reduction in natural gas prices was a key contributor to the decline in the market for Zinc oxide. The price decline of Zinc oxide was also influenced by destocking at the end of the year when producers were focused on merely emptying their supplies even at a reduced cost.
For the Quarter Ending September 2022
North America
Zinc Oxide prices in North America displayed conflicting sentiments during the third quarter of 2022, which were aided by fluctuating feedstock prices. The pricing trend for Zinc Oxide, which was rising in July, dramatically fell in August before picking up again in September. The market price of the feedstock Zinc led Zinc Oxide’s value in the domestic market to vary, which kept the upstream cost changeable throughout the quarter. The downstream demand from the rubber industry also abruptly decreased in August after rising in July and then again in September, which influenced the market sentiments for Zinc Oxide in the same way during the considered period.
APAC
The third quarter of 2022 witnessed unsteadiness in the price of Zinc Oxide in the Asia-Pacific region, which was supported by shifting feedstock prices. Zinc Oxide prices were growing in July but dipped precipitously in August before climbing once more in September. The value of Zinc Oxide in the domestic market fluctuated due to the market price of the feedstock, which caused the upstream cost to fluctuate during the quarter. While experiencing an increase in July and September, the downstream demand from the rubber industry also dramatically declined in August, which had a similar effect on the market emotions for zinc oxide. The price of Zinc Oxide (Rubber Grade) assembled at USD 2924.56/MT Ex-Vadodara during September.
Europe
The price fluctuations for Zinc Oxide in the European market during the third quarter of 2022 were caused by fluctuating feedstock costs. The Zinc oxide price value rose in July but fell sharply in August before rising again in September. The market price of the feedstock caused the value of zinc oxide to fluctuate in the domestic market, which changed the upstream cost during the quarter. While rising in July and September, the downstream demand from the rubber industry also experienced a sharp decrease in August. This had a similar impact on the sentiments of the Zinc Oxide market.
For the Quarter Ending March 2022
North America
The prices of Zinc Oxide witnessed an increment in the first quarter of 2022 across the North American region. Zinc prices were evaluated at USD3950/MT in January and soared beyond USD4,000 per tonne in the second part of Q1 to a 15-year high, propelled by increased energy costs and supply concerns. The three-month zinc (primary material) contract traded on the London Metal Exchange (LME) rose to USD4,247 per metric tonne on March 7, setting a new high for the site since records began in 2007. Zinc metal prices, on the other hand, have fallen since their March 7 peak, but they are still 7% higher than they were at the beginning of the year. On the demand front, offtakes from the Rubber industries remained strong throughout the first quarter.
Asia Pacific
In the Indian market, the prices of Zinc Oxide escalated effectively in Q1 2022 from USD2621.54/MT to USD2797.79/MT Ex-Vadodara from January to March 2022. The demand from the downstream rubber and automotive industries remained firm throughout the quarter. In China, after the Federal Reserve signalled robust efforts to battle inflation in China, the Shanghai Metals Market (SMM) ended the first half of 2022 with gains in overnight trade on Friday, March 11. Domestic refined zinc output declined more than expected in February, according to the SMM survey, due to a variety of factors, including routine maintenance at several smelters in Yunnan and production unit suspensions due to Spring festival holidays, which further impacted the supply of Zinc Oxide. Following the second week of February, domestic smelters resumed consistent output, adding to the market's supply. The end-user automobile and pharmaceutical industries had considerable offtakes throughout the quarter on the demand side in the country.
Europe
During Q1 2022, European Zinc Oxide market showcased mixed sentiments due to the insufficient supplies and firm demand from the end-user industries. The prices of Zinc Oxide were estimated at USD3060/MT in Belgium during January 2022. Commodities dealers surged upwards in the second half of 2022, capturing a once-in-a-lifetime profit from shipping metals including Zinc metal out of China, as the war in Ukraine caused supply difficulties for European manufacturers who rely largely on Russian supplies. During H2 of the first quarter 2022, the sudden escalation of a worldwide supply crisis affected European purchasers the hardest. Furthermore, with global supplies running low, analysts and dealers said the unusual flow of metals from China to Europe only provided temporary relief, while Russian exports remained hampered.
For the Quarter Ending December 2021
North America
The market trend of Zinc Oxide remained stagnant throughout the fourth quarter of 2021 across the North American region. The prices of Zinc Oxide were assembled at USD 4665 per MT CFR California in December. The demand remained strong from the downstream sectors, and buying sentiments accelerated in Q4 due to the concerns over supply disruptions because of prolonged high energy prices and a weaker dollar. Zinc prices in the US domestic market observed an upward pressure due to supply tightness and high freight costs.
Asia
In Q4 of 2021, the Asian market of Zinc Oxide observed a significant rise in the prices in the month of November and then later got stabilized in December. In the Indian domestic market, the prices of Zinc Oxide escalated from USD 2603.15/MT to USD 2807.92/MT from October to December on the back of the increased raw material prices. The prices of Zinc Powder significantly climbed up in mid-November, which further exacerbated the prices of several downstream derivatives, including Zinc Oxide, across the country. Soaring Zinc metal costs have also supported the price trend of Zinc Oxide in the country. Several market players reported that their input cost had increased drastically that squeezed their margin in quarter 4 due to which they were left with no other option than to transfer this price burden onto the consumers. Ex-Vadodara prices for Zinc Oxide were settled at USD 2536.15 per MT in the ending week of December.
Europe
During the fourth quarter of 2021, the pricing trend of Zinc Oxide witnessed an upward trajectory across the European region. The prices of Zinc rose significantly in the 4th quarter due to the strong demand and disrupted supply which further affected the prices of Zinc Oxide across the region. Due to the lack of availability on the spot basis, consumers were paying more to secure the material in Q4. Peaking energy crises and high raw material prices further exacerbated the price trend of Zinc in the region.
For the Quarter Ending September 2021
North America
The overall market outlook of Zinc Oxide demonstrated an upward trajectory in North America during Q3. Disrupted manufacturing activities as a repercussion of Hurricane Ida in August end resulted in a drop in inventory levels of Zinc Oxide which thus surged its prices in the regional ZnO market. The consumption of Zinc Oxide effectively improved from the industrial rubber segment, due to pick up in market activities in September. In addition, significant rebound in downstream pigment sector also bolstered the overall demand for the product, which was running muted from last two months.
Asia
The Asian market witnessed a decent rise in the prices of Zinc Oxide during the third quarter of 2021. In India, prices climbed up again in the month of July, supported by rising feedstock prices amid strong demand from the domestic market. The demand for Zinc Oxide rose significantly during after July, under the influence of improving market activities after an effective decline in COVID cases in India. In addition, surging feedstock prices also exacerbated this overall price trajectory of Zinc Oxide in the country. Thus, the price of Zinc Oxide TS-99 eventually reached USD 2104/MT Ex-Vadodara and USD 2373/MT FOB Hazira during August.
Europe
In the European region, the domestic market of Zinc Oxide showcased mixed sentiments in Q3 2021. The orders of Zinc Oxide by manufacturing companies fell in September as the production of tires declined across the region. Imports from China had been slow in this quarter, which led to the decreased product inventories. Demand for Zinc Oxide kept falling in September and was hard to pick up amid worries over prolonged supply disruption.
For the Quarter Ending June 2021
North America
The diversion of upstream Zinc in the dietary supplements led to a rise in prices of Zinc Oxide in the North American region. Whereas uncertainties regarding the freight charges and container availability forced traders and suppliers to closely monitor the market dynamics in the second quarter of 2021. As a repercussion, buyers became more flexible to the European cargoes. Demand remained firm throughout the quarter as offtakes were consistent from cosmetics and personal care sector amidst the rise in enquiries for the skin care products.
Asia Pacific
The supply outlook in the Asia Pacific region was constraint in the second quarter of 2021, as the resurgence of Covid in several parts across the Southeast Asian region diverted volumes of feedstock Zinc to the pharmaceutical sector for supplement manufacturing. Due to devastating impact of Covid in India, prices of refined Zinc surged by 1.9% on m-o-m in May. Demand remained firm from the downstream personal care and cosmetics industries. Consequently, prices of Zinc Oxide rose taking cues from the hike in prices of feedstock Zinc and high demand.
Europe
During the second quarter of 2021, supply of Zinc Oxide remained ample in the European region. The production margins rebounded in the Northwest Europe post winter season which eased the supply outlook. Demand bolstered from the downstream personal care and cosmetics industries, supported by better public movement as mass vaccination drive rolled out across the European region. As a ripple effect, prices of Zinc Oxide in the European region stabilized in the second quarter.
For the Quarter Ending March 2021
North America
The demand of Zinc Oxide from downstream pharmaceutical and cosmetics industries improved over Q4. However, major plant outages in the USA Gulf region reduced its consumption as an intermediate from various segments amid the subzero temperature in the region. Supplies were ample as metallic zinc market rebounded since the previous quarter. The majority of Zinc Oxide supplies were diverted towards the pharmaceutical sector amid rising awareness of Zinc supplements among people to safeguard from the COVID hiked the prices of Zinc Oxide in North America.
Asia-Pacific (APAC)
The supplies of the Zinc Oxide in the Asia Pacific market showed mixed sentiments as they stood ample during the first quarter of 2021 taking cues from the plant turnarounds during the Chinese Lunar New Year holidays. In China, market outlook remained uncertain after the new environmental protection guidelines and inspection drives by the Chinese authorities. Demand slumped during Q1 as offtakes reduced from the downstream personal care and cosmetics sector amid ample inventories level due to oversupply of the raw material. The oversupply of Zinc metal and reduced demand resulted in decline on the prices of Zinc Oxide in the regional market.
Europe
In Europe, the Zinc Oxide supplies during Q1 2021 remained high due to an upsurge in inventories level of the Zinc Oxide. However, due to the limited industrial and commercial activities amid the lockdown in Europe and reduced plant operating rates in the first quarter, the demand showed a staggering fall within the quarter. However, improved offtakes from the downstream personal care & cosmetics sector were reported towards the end of the quarter.
For the Quarter Ending December 2020
North America
Supply chain disruptions caused by multiple hurricanes, created the shortage of minerals across the region. Healthy demand but ample supply raised the prices of Zinc Oxide initially which later came down till the end December 2020. In USA, FOB price of Zinc Oxide slipped from USD 5120/tonne (October 2020) to USD 4000 /tonne (December 2020). The quarter ended with the news of SLG LLC collaborating with Evercare for global distribution of Zinc Oxide. This partnership would improve the distribution and availability of Zinc Oxide across the region.
Asia
In the Asian market, the demand of Zinc Oxide remained stable and marginally went down during Q4 2020. In China, potential Zinc Oxide shortage created panic among buyers which witnessed sharp rise in prices from Q3 to Q4. Manufacturers anticipated that supply will be restored within Q4 and prices would be stabilised again. Meanwhile, the demand in other Asian countries remained good but tight supply raised the prices initially but during December prices stopped accelerating and dropped again. FOB price of Zinc Oxide in Taiwan came down from USD 2630/tonne (October 2020) to USD 1800 USD/tonne (December 2020).
Europe
Amid rapid spread of COVID-19 during Q4 2020, the market showed stability in demand. The demand was driven by the healthcare and rubber industries. On the other hand, European union banned the use of veterinary medicine containing more than 150 ppm Zinc Oxide. This announcement came in November 2020 and planned to be implemented till July 2021. This will reduce the demand of Zinc Oxide for veterinary supplement sector in Europe.
