Record-low Rhine water levels amid western European drought have forced BASF to declare force majeure on selected surfactant products, following similar action by Covestro on polyether polyols. Over 75% of Covestro's European raw materials move via the Rhine, and the disruption is spreading across the chemical cluster, tightening supply and supporting higher prices for affected products.
SMM analysis reports that zinc slag payables stayed relatively stable in June despite weakened end-use consumption and lower galvanizing plant operating rates. Supply tightness and firm crude zinc payables are expected to keep payables stable going forward.
Zinc chloride is a hygroscopic crystalline solid used as a Lewis acid catalyst, soldering flux, and dry cell battery electrolyte, with further applications across galvanizing, wood preservation, water treatment, textile processing, and surface treatment. Pricing is tied to zinc metal and chlorine, whose availability and cost shape production economics and market sentiment.
Through H1 2026, zinc chloride traded range bound to softer across key regions. Subdued demand carried over from late 2025, with steel processing, galvanizing, and metal treatment buyers holding purchasing discipline. Zinc feedstock availability stayed comfortable on steady smelter throughput and well managed inventories, limiting cost push, while chlorine supply remained adequate. Asian buyers in China and Southeast Asia procured hand to mouth amid cautious industrial sentiment and sluggish construction and manufacturing orders. European participants faced elevated energy overhead, muted steel recovery, and competitive supplier dynamics that discouraged restocking. In North America, water treatment, industrial cleaning, and infrastructure demand provided stabilising support, though trade policy uncertainty curbed forward buying. Into spring, battery manufacturing, textile processing, and pharmaceutical grade applications offered pockets of resilience that partly offset heavy industrial weakness, leaving the balance oriented in buyers' favour.
Analyst Insight
According to Procurement Resource, zinc chloride prices should stay cautious through H2 2026, with comfortable feedstock supply containing cost pressure while subdued steel processing, galvanizing, and construction activity prevents a demand led recovery. Direction will depend on industrial recovery across Asia and Europe, energy costs, and how much supply battery and water treatment demand can absorb.
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Asia
In Asia, zinc chloride prices followed a generally soft to stable trend during Q4’25. The region faced weak demand from downstream sectors such as steel processing, chemicals, and surface treatment, which limited consumption growth. Zinc availability remained comfortable due to steady output, while chlorine supply stayed ample as production costs remained low. Falling activity in Asian steel plants reduced the need for zinc chloride in pickling and metal treatment applications. Buyers stayed cautious and preferred short-term procurement instead of long-term commitments. Trade concerns and slower industrial activity further reduced buying interest. As a result, zinc chloride prices in Asia lacked strong support and exhibited a bearish trend.
Europe
In Europe, zinc chloride prices remained under pressure during Q4’25 due to weak industrial demand and high supply levels. The slowdown in steel production reduced chlorine-based chemical consumption, which indirectly affected zinc chloride demand. At the same time, energy costs and regulatory pressure continued to weigh on the European chemical sector, leading to aggressive competition among producers. Several chemical producers focused on clearing inventories rather than pushing for higher margins. Thin year-end trading volumes also amplified short-term price softness. Overall, Europe saw zinc chloride prices remain weak and highly competitive during the quarter.
North America
In North America, zinc chloride prices showed mild weakness but were relatively more stable compared to Europe and Asia. Demand from infrastructure, water treatment, and industrial cleaning stayed steady but did not improve significantly. Chlorine availability remained sufficient due to lower feedstock costs, while zinc supply concerns eased as global inventories improved. Buyers avoided bulk stocking and focused on need-based purchases. Market sentiment stayed cautious, with pricing influenced more by downstream demand trends than supply shortages.
Zinc chloride occurs as a crystalline solid that has a hygroscopic nature and high solubility in water. It acts as a lewis acid in chemical industries, and thus is used as a versatile catalyst in a number of industrial processes. It can also aid in joining metals by acting as a flux in soldering and has a relatively high melting point. Its capacity to carry electricity when dissolved in water is also used in batteries and other electrochemical processes.
ZnCl2
Galvanizing, Oil and gas industry, Batteries, Textile, Antiperspirants
Sodium salt of hydrazoic acid
Zaclon LLC, Costal Zinc Group, Jinzhou Jitian Zinc Industry Co Ltd, HaloPolymer OJSC, Tianjin Nanping Chemical Co Ltd, TIB Chemicals, Flaurea Chemicals, Sigma Chemical Industries
CurrencyUS$ (Data can also be provided in local currency)
Supplier Database AvailabilityYes
Customization ScopeThe report can be customized as per the requirements of the customer
Post-Sale Analyst Support360-degree analyst support after report delivery
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
This process involves the reaction between chlorine in its elemental form and zinc oxides or zinc ore. The product obtained initially is the crude form of zinc chloride solution that further goes under fraction distillation to separate out hydrochloric acid and sodium chloride.
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