Asia
The active zinc oxide market in Asia recorded moderate gains during the second half of 2024. The prices were mainly affected by zinc metal prices, which were used as raw materials. During the early part of H2, mining activities in China were affected by heavy rains, which caused a halt in mining activities. This caused prices to rise. However, with the commencement of mining activities in August, production levels were high, causing minor corrections in prices. The demand for active zinc oxide in major consuming sectors remained strong. Investments in infrastructure development, especially in India, also remained strong. The demand for active zinc oxide in tire manufacturing also remained strong. Though there were minor issues in logistics, supply levels were balanced, which caused prices to remain stable with minor upward pressure.
Europe
The prices of active zinc oxide in Europe followed a consistent pattern in H2’24. The prices experienced some volatility in the initial period of the half due to supply-side issues, including the increasing costs of imported zinc. Demand from the downstream sectors, including the rubber and paints industries, was moderate, whereas demand from the automotive and construction sectors was recovering slowly. The government took measures to support local zinc production, which kept the market stable despite the presence of inflation and geopolitical factors.
North America
North America witnessed a gradually increasing trend in the prices of active zinc oxide in the said quarter. The prices were closely linked to the prices of zinc metals. The prices of zinc metals were highly volatile due to global supply factors and the expectation of Federal Reserve interest rate cuts. The demand for active zinc oxide in tire manufacturing, paints, and cosmetics was robust and consistent. However, the region witnessed some disruptions in the supply chain due to hurricanes. The overall balance in the region was moderate.
Analyst Insight
According to Procurement Resource, Active Zinc Oxide prices are expected to remain stable to slightly bullish, supported by steady industrial demand and manageable supply constraints.