Asia
During the first quarter of 2024, zinc nitrate prices in Asia experienced a downward trend. This was primarily driven by an increase in zinc production, which led to an oversupply situation. Globally, zinc output rose, with Chinese production expected to increase significantly by the following year. Despite various factors influencing zinc nitrate prices, the oversupply condition remained the dominant force.
The Indian market also faced challenges, with a significant depreciation in zinc prices the previous year and major producers like Hindustan Zinc reporting consecutive declines in profits. The imbalance between supply and demand, escalated by weak downstream demand from the construction and automotive sectors in China and high inventory levels, applied consistent downward pressure on zinc nitrate prices. The sluggish economic recovery in China post-COVID further contributed to this trend.
Europe
In Europe, the zinc nitrate market mirrored the global sluggishness, although there was a brief uptick in prices in January when Nyrstar, a significant zinc producer, halted production, constricting the functioning of its supply chains. This maintenance shutdown, attributed to high energy costs and weak market conditions, created a temporary supply gap, offering a slight boost to prices. However, this was short-lived as the demand deficit quickly reasserted itself, causing prices to decline again amidst ongoing supply chain challenges and weak market conditions.
North America
The North American zinc nitrate market faced similar difficulties as its Asian and European counterparts. Prices struggled due to subdued demand and high inventory levels. Despite rising energy and processing costs, the significant demand deficit overshadowed these factors, leading to a declining price trend. Additionally, the international market performance was equally disappointing, contributing to the overall weak performance of zinc nitrate in the region during this period.
