For the Quarter Ending June 2023
North America

The Zinc powder market in North America experienced a relatively stable price trend during the second quarter of 2023. Prices in CFR California saw a slight decrease from $4280 per metric tonne in April to $4250 per metric tonne in June, resulting in a decline of -0.7% over the quarter. The United States initially showed positive signs as the economy improved, with inflation dropping by nearly 5%, reaching its lowest level in two years. However, the economy started slowing down significantly in the latter half of the year. The demand for pharmaceutical-grade Zinc Powder in the USA declined as nutraceutical and pharmaceutical companies stocked up. Meanwhile, the Nutra sector experienced a fluctuating market due to differing opinions on supplement costs. Despite improvements in market conditions and trading dynamics, weaker demand for zinc across the country led distributors to offer it at lower prices. Inflationary pressures and China's sluggish recovery also impacted confidence and dampened zinc demand in the US, as stated by an industry source. They added that the industry did not anticipate such a significant drop in zinc prices that would lead to mine closures this year.

Asia Pacific

The Zinc powder market in the Asia-Pacific region witnessed mixed price movements throughout the second quarter of 2023. Prices in EXW Shanghai initially increased from $3870/t in April to $3920/t in May but subsequently declined to $3790/t in June. This downward trend began in late May and intensified as demand for zinc powder from the pharmaceutical and nutraceutical sectors decreased both globally and domestically. Chinese zinc powder producers had to sell their products at narrower profit margins due to weakened demand and consumer inquiries. According to statistics, China's manufacturing activity contracted for the third consecutive month in June, albeit at a slower rate. The June PMI indicated various imbalances and weaknesses, including ongoing losses in domestic and foreign demand, accelerated declines in business activity, and mounting pressure on the pharmaceutical and nutraceutical industries. Given the state of the Chinese economy, manufacturers and sellers remained cautious and adjusted production based on demand.

Get Real Time Prices of Zinc: https://www.chemanalyst.com/Pricing-data/zinc-1260

Europe

In Europe, the zinc powder market experienced a stagnant second quarter, with prices initially rising in the first half and subsequently declining in the latter half. Reduced demand from downstream industries, coupled with significant supplier inventories, contributed to price decreases in the German domestic market during the second half of the quarter. In April, gas prices for power generation in Europe hit their lowest level since the start of the crisis. However, the market environment was severely impacted by an unexpected rise in the unemployment rate in Germany in June. Retailers stockpiled zinc powder to mitigate potential future shortages, which later prompted them to lower their profit margins to clear their inventories. In June, German inflation rose by over 6%, but the country's Zinc Powder industry remained unaffected. Similar to other regions, market participants in Europe adopted a wait-and-see approach and remained skeptical about the economic situation in the country.



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