Zinc Prices chart during the second quarter of 2023 | ChemAnalyst

Posted by ChemAnalyst on September 14th, 2023

For the Quarter Ending June 2023

North America:

The Zinc Powder market in North America exhibited a stagnant price trend during the second quarter of 2023. Between April and June, CFR California prices experienced a modest decline, slipping from 80 per metric tonne to 50 per metric tonne, marking a -0.7% decrease over the quarter. The United States market commenced the second quarter on a positive note as the economy improved, highlighted by a nearly 5% drop in the inflation rate, reaching its lowest level in two years. However, economic statistics still indicated a substantial slowdown in the second half of 2023. Lower demand for pharmaceutical-grade Zinc Powder was observed in the USA as downstream nutraceutical and pharmaceutical companies increased their inventories. However, the Nutra sector in the country displayed an uneven market action pattern, influenced by divergent opinions on supplement costs. Despite improvements in both market conditions and trading dynamics in the US, weaker inquiries for zinc across the country prompted distributors to offer it at reduced prices. An industry source noted, "Inflationary pressures and the sluggish recovery in China eroded confidence and suppressed demand for zinc in the US. We did not anticipate zinc prices falling so low as to necessitate mine closures this year."

Asia Pacific:

The Zinc Powder market in the Asia-Pacific region exhibited a mixed pattern of price movements during the second quarter of 2023. EXW Shanghai prices initially increased from 70 per tonne in April to 20 per tonne in May but subsequently declined to 90 per tonne in June. This price decline commenced in the latter weeks of May and continued relentlessly as demand for zinc powder from the downstream pharmaceutical and nutraceutical sectors experienced both global and domestic declines. Chinese zinc powder producers were compelled to sell their product at narrower profit margins due to weakening demand and reduced 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 revealed various imbalances and weaknesses, including sustained losses in both domestic and international demand, an acceleration in business activity decline, and mounting pressure on the country's pharmaceutical and nutraceutical industries. Given the state of the Chinese economy, manufacturers and sellers adopted a cautious approach, producing products based on demand.

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

Europe:

In Europe, the Zinc Powder market exhibited stagnation during the second quarter, with prices initially rising in the first half and subsequently falling in the latter half. The price decline in the German domestic market in the second half of the quarter was primarily driven by lower demand from downstream industries and the presence of significant supplier inventories. In April, the cost of natural gas for power generation in Europe reached its lowest level since the onset of the crisis. Conversely, the market environment was significantly impacted by an unexpected rise in the unemployment rate in Germany in June. Retailers stockpiled zinc powder to hedge against potential future shortages, leading them to lower their profit margins later in the quarter to deplete their inventories. Although German inflation once again exceeded 6% in June, the country's Zinc Powder industry remained relatively unaffected. Similar to the global trend, market participants in Germany maintained a cautious stance and harbored skepticism regarding the nation's economic situation.

 
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