Zinc Oxide Price Trend and Forecast

Zinc Oxide Regional Price Overview

Get the latest insights on price movement and trend analysis of Zinc Oxide in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Zinc Oxide Price Trend for the Q3 of 2024

Asia

The price trajectory of zinc oxide traced an oscillating course inn the third quarter of 2024. The prices of zinc oxide are heavily dependent on the market prices of zinc metal, its feedstock. The prices of zinc metal kept fluctuating in the market as the heavy rains had forced the mines to close, which halted the production temporarily. After the maintenance the production was increased significantly in August. This Interplay between the supply and demand kept prices oscillating in the market. Toward the end of the quarter, the price of zinc metal showed sudden rebound along with the other metals in Chinese market and globally as the much-awaited Federal reserve cuts were announced on the September 19, 2024.
 

Zinc Oxide Price Chart

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Additionally, Silox India has announced to invest over 500 cores in their new site. The company primarily supplies zinc oxide and zinc derivatives to the automotive market. This will help to balance the increasing demand coming from the coatings and infrastructure market due to continued investment by the Government of India and private players in infrastructure like railways, airports, and roadways.

Europe

The prices of zinc oxide followed global trends, particularly those seen in the Chinese market, during the third quarter of 2024. Prices fluctuated in the first two months of the quarter but showed an upward trend in the final month. The recovery in demand contributed to positive market sentiment throughout the quarter. Government initiatives aimed at supporting the domestic zinc and zinc derivative industries helped stabilize prices, although challenges in downstream sectors, such as construction and automotive, continued to pose concerns.

North America

The prices of zinc oxide resembled the global trends in the third quarter of 2024. The prices mirrored the trajectory of the zinc metal, which kept fluctuating throughout the quarter. By the end of the quarter, zinc prices were poised to benefit from the anticipated interest rate cuts by the U.S. Federal Reserve. When the Fed announced a 50-basis point cut, zinc prices surged. The rationale behind this increase lies in the weakened U.S. dollar, which made zinc more affordable for international buyers using other currencies. This surge soon showed up in the price of zinc derivatives including zinc oxide, showing a significant upward trend.

Apart from this, the region experienced several hurricanes, posing risks to cultivated crops and causing significant supply chain interruptions. While some production facilities were forced to shut down, the impact was largely confined to limited regions.

Analyst Insight

According to Procurement Resource, the prices of zinc oxide is expected to fluctuate in the coming quarters depending on the cost support the feedstocks and downstream demand.
 

Zinc Oxide Price Trend for the Q2 of 2024

Asia

The price trend of zinc oxide closely reflected the market momentum of its feedstock zinc ingot during the second quarter of 2024 in the majority of Asian countries. The revival of the manufacturing sector after the holiday season in China supported a surge in demand for zinc oxide domestically, visible in the incline in the number of new orders of the commodity. Additionally, supply chain disruptions globally and a slight decline in Asian zinc production further pressurized the Asian inventories and supply chains, leading to a northward surge in the prices of zinc oxide.

Meanwhile, the cost support from export volumes remained modest at best as the overseas consumers were hesitant to acquire the bulk amounts of the commodity amid the ongoing trading challenges seeded by the re-routing of the Red Sea route and continuous tensions in the Middle East.

Europe

As compared to the first quarter, the market dynamics of zinc oxide improved during the second quarter of 2024, as indicated by the surging price quotations of the commodity. This improvisation of the market dynamics was based on a significant rise in the procurement rates of the commodity from the downstream industries. Meanwhile, the manufacturing sector struggled with the loss of imports of metal zinc from Russia and Asian countries amid the escalating geopolitical tensions and disruption of traditional trade routes. The extension of lead times further strained the supply chains and widened the supply-demand gap of the commodity, giving the traders room to increase their zinc oxide price quotations.

North America

The North American market of zinc oxide closely mimicked the sentiments of European countries as, throughout the second quarter of 2024, the prices of the commodity inclined. This was based on the complex interplay of weak supply and strong demand for zinc oxide during Q2’24. The traders bore significant challenges throughout the quarter in order to acquire ample quantities of zinc oxide, but the persistent logistical changes, escalating cost of transportation, and limited support from the Asian players deprived the inventories. Amid these circumstances, the demand for zinc oxide from the downstream industries shot up, higher than the anticipated numbers by the market participants, further pushing the pricing pattern of zinc oxide in a northward direction.

Analyst Insight

According to Procurement Resource, the price of Zinc Oxide is expected to witness an inclining journey in the near quarter under the influence of escalating demand and insufficient availability of raw material.
 

Zinc Oxide Price Trend for the Q1 of 2024

Asia

Zinc oxide is produced by processing zinc. Thus, the price trends for both zinc and zinc oxide align closely with each other. During the discussed tenure of Q1’24, the zinc oxide market in China saw some rise in operation as the post-COVID economic and manufacturing recovery in the country has been sluggish.

The rubber industries, electronics, manufacturing, construction, etc., sectors were putting out some demands; however, the general depreciation, in the end, consumer consumption pulled the markets down in general. During the Chinese New Year, the market plummeted even more in China. In the Indian market, too, the supply and demand balance was very distraught, which kept the price trend tilted southwards.

Europe

The zinc oxide prices in the European market saw dwindling patterns in the first three months of 2024. The European market saw a depreciation in Euro values against US Dollars, which affected the common man’s purchasing capacities. These purchasing patterns were anyways tottering since the region has been struggling with inflation for a long time now.

Nyrstar put its Netherland plant on maintenance closure which brought some parity in the region’s supply and demand dynamics. However, the balance was very short-lived as the prices started plunging again, surrendering to the demand depreciation. The ever-stretching Russia and Ukraine war has been majorly disturbing the supply chains, which got even more disturbed during this time as the shipping hurdles unfolded in the Red Sea. Overall, a dull market performance was witnessed in Q1’24.

North America

The US’s influence on geopolitical and geoeconomic matters played a detrimental role this time as the domestic markets were facing the wrath of trampling customer interests and capacities.

Piracy was on a steep rise in the Red Sea and the Indian Ocean disturbing the trade for global suppliers. This was reflected in the American zinc oxide market as well. Both domestic and offshore orders were largely underwhelming. Inventories were bulking with unused stocks and maintained the downward pressure on the regional price trend. Conclusively, the zinc oxide prices remained wavering on the lower side of the price curve.

Analyst Insight

According to Procurement Resource, not much improvement is anticipated in the Zinc Oxide price trend moving ahead as well since the demands are not projecting any rise.
 

Zinc Oxide Price Trend for October - December of 2023

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Asia

The zinc oxide price trend saw a significant fluctuation in the fourth quarter of 2023. The prices in October saw a dramatic upheaval in the price trajectory of zinc oxide. Zinc prices, the crucial feedstock for zinc oxide, were in the range of 20,000-22,000 RMB/ton. However, zinc saw a dipping motion in mid-October compared to the initial week of the month. The reported slump in the prices was around 3.1% in the Chinese market. However, owing to the downstream demands and extenuation in the downward pressure, the end of the fourth saw an improvement in the prices on the back of upstream zinc-involving industries.

Europe

The zinc oxide price trend in the European region faced a wavering trend throughout the quarter, mimicking the Chinese market outlook for the fourth quarter of 2023. The primary reasons were the tottering demand dynamics and dynamic spot prices for the feedstock, zinc. However, towards the end of the quarter the zinc oxide prices seemed optimistic.

North America

In the fourth quarter of 2023, the US zinc oxide market experienced fluctuations following the imposition of sanctions by the Office of Foreign Assets Control on Russian mining entities, particularly impacting global zinc supplies. This led to a slight increase in zinc prices, as evidenced by a 1.4% rise in the spot price on the London Metal Exchange.

The US non-ferrous metal sector saw a general rise due to a weakened US dollar, positively affecting zinc prices. However, the market faced an oversupply of zinc ore, making the long-term rise in prices uncertain. Analysts predicted a period of price fluctuations and consolidation, balancing the reduced supply expectations against the existing oversupply.

Analyst Insights

According to Procurement Resource, the zinc oxide prices may increase in 2024 majorly slated to the gaining zinc market and increase in the non-ferrous metal prices.
 

Zinc Oxide Price Trend for the July - September of 2023

Asia

The zinc oxide price trend were heavily influenced by the significant decline in the cost of raw materials and struggling downstream demand. The third quarter also faced contraction in the rubber, polymer, and automotive sectors, but only during the initial period. As the quarter approached the end, the support from the infrastructure market and the growth of automotive sectors helped the zinc oxide price trend to surge.

Europe

The severe oscillations in the downstream sector posed a significant problem for the manufacturers as well as traders of zinc oxide. Additionally, the persistent inflation and rise in the rates of interest charged by the banks lowered the appetite of consumers. This reduction in the purchasing potential was well evident in the functioning of the end-user sectors, and further, the increased availability of zinc oxide forced the traders to lower their price quotations for zinc oxide.

North America

The zinc oxide price graph moved southwards in the third quarter as the contraction in the demand outlook of the domestic and overseas industries raised the concerns of traders. Among the end-user industries, the paints and coatings sector took the major hit of rising inflation and poor economic growth, and thus, these industries were forced to reduce their capacity for zinc oxide orders. However, the domestic market moved swiftly towards the end phase as the product supplies were well balanced by the improving momentum of the zinc oxide market.

Analyst Insight

According to Procurement Resource, the price trend of Zinc Oxide are expected to showcase a declining trajectory. The dynamics of the zinc oxide market are expected to be down, driven by poor procurement from the end-user industries.
 

Zinc Oxide Price Trend for the First Half of 2023

Asia

In Asia-Pacific, the downstream industries showcased positive demand in the first quarter, which was adequately balanced by the steady supply of zinc oxide. The import of high-priced products in the market also supported the inclining price trend. But this inclining trajectory did not sustain in the later months of the first quarter and also in the second quarter.

Soon the demand dynamics slumped, especially from the automotive industries. This plunging trend in demand was due to high inflation rates and falling market activities. Many mining mills increased their production capacities, which caused the oversupply of zinc oxide in the Asian market and eventually led to the downfall of the prices.

Europe

In the European region, the market struggled from the disruptions and tensions caused by the Russia-Ukraine crisis throughout the first quarter of 2023. A significantly gradually declining price trend was thus observed in both the first and second quarters of 2023.

The operating activities, however, showed improvement in the second quarter, but due to subdued demand, it only caused the level of inventories to rise. In addition to this, high extraction rates and enhanced interest of miners in this sector further added to the overstocking problem and majorly affected the falling trend of zinc oxide prices.

North America

Low demand for zinc oxide and slowing of market sentiments caused zinc oxide prices to decline gradually in the first quarter of 2023. There was some improvement in the rubber, ceramics, and paints sector, but the high pressure of inflation overshadowed this. In the sector quarter, demand from automobile and construction industries steadily decline at the onset of monsoon season. The falling economy also deprived the North American market from the confidence of buyers and further aided the fall in prices of zinc oxide.

Analyst Insight

According to Procurement Resource, the price of Zinc oxide is estimated to observe a downward trajectory given the current pricing fundamentals amid falling demands and volatile supply chains.

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