The Zinc Price Index experienced diverse regional trajectories during July 2025, reflecting varying demand dynamics, supply availability, and production cost structures across major global markets. In North America, the Zinc Powder (Pharma Grade) Price Index extended its downward trend amid persistent oversupply and sluggish consumption within the pharmaceutical and healthcare manufacturing sectors. Conversely, Europe and Asia-Pacific (APAC) regions demonstrated a firmer sentiment, supported by renewed procurement activity and upstream cost pressures.

Zinc, particularly pharma-grade zinc powder, remains a critical input for nutraceuticals, supplements, and various pharmaceutical formulations. Therefore, price fluctuations in this segment are closely tied to broader healthcare demand cycles, raw material inventories, and industrial energy costs.

North America Zinc Price Index: Persistent Weakness Amid Oversupply

The Zinc Price Index in North America, particularly in the United States, witnessed a sustained decline through July 2025, extending the bearish momentum observed since the late second quarter. The spot price of Zinc Powder (Pharma Grade) during the third week of July 2025 was assessed at USD 3,420 per metric ton, marking a continued fall from early July levels and signaling ongoing demand weakness in the domestic market.

Market Drivers and Influences

The downward trajectory of the Zinc Price Index in the U.S. was largely driven by three converging factors:

1. Oversupply Conditions:
   Persistent stock accumulation at regional distributors and warehouses continued to exert downward pressure on prices. Several suppliers reported high inventory-to-demand ratios, a result of reduced offtake from pharmaceutical formulation plants and nutraceutical supplement producers.
2. Muted Pharmaceutical Demand:
   End-use demand for pharma-grade zinc—used in immunity-boosting and nutritional applications—remained below expectations during mid-2025. Following a strong post-pandemic consumption phase, the market has gradually entered a phase of normalization, reducing the frequency of bulk procurement.
3. Stable Energy and Labor Costs:
   While industrial energy prices in North America stabilized during the summer months, they did not provide a significant cost cushion to zinc powder producers. The absence of cost-driven inflation allowed buyers to negotiate more favorable terms, pushing the price index downward.

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

Inventory and Supply Chain Conditions

Producers in the Midwest and Gulf Coast regions indicated steady operating rates, though many shifted production priorities toward higher-margin zinc alloys and industrial-grade zinc powders to offset weak pharmaceutical-grade demand. Import competition remained subdued as domestic supply was sufficient to meet consumption needs.

Logistics and freight costs also showed moderate easing due to stable diesel and fuel prices, further reducing overall landed costs. This, however, contributed to a more pronounced price correction, as cheaper delivery options made domestic zinc powder more accessible to regional buyers.

Price Index Trend Summary

The bearish Zinc Price Index trend in the U.S. highlights a transitional phase in the regional market, where end-user consumption has not yet recovered to offset high production volumes.

Europe Zinc Price Index: Uptrend Driven by Cost Inflation

In contrast to North America, the Zinc Powder (Pharma Grade) Price Index in Germany recorded a firm upward trajectory during July 2025. This shift was largely attributed to rising input costs and stronger procurement activity among European buyers.

Price Developments

The spot price of Zinc Powder (Pharma Grade) in Germany rose during July, reflecting elevated energy tariffs, labor expenses, and freight challenges within the European Union (EU). Refining facilities across Germany and neighboring countries faced increased electricity costs due to constrained gas supplies and elevated carbon pricing policies, directly influencing zinc powder production costs.

Key Market Factors

1. Supply-Side Constraints:
   Refinery maintenance schedules in Germany and France temporarily curtailed zinc powder availability. This limited production window tightened short-term supply, even as demand from pharmaceutical and cosmetic manufacturers improved.
2. Rising Energy Costs:
   European zinc refiners experienced heightened electricity and gas prices, particularly amid ongoing decarbonization measures. The higher energy expenditure significantly inflated conversion costs for zinc powder production.
3. Labor and Logistics Pressure:
   Wage revisions across the EU manufacturing sector, coupled with higher packaging and transportation costs, added further price escalation momentum.

Demand Resilience

Despite inflationary headwinds, downstream industries such as nutraceuticals and personal care continued stable consumption. Some buyers opted for forward procurement contracts to hedge against anticipated price rises in the upcoming months, supporting the bullish sentiment in the Zinc Price Index.

European Price Index Summary

The European Zinc Price Index therefore reflected not only cost inflation but also an anticipatory procurement wave as buyers braced for possible tightening in Q3 2025.

APAC Zinc Price Index: Recovery Momentum in Indonesia

The Asia-Pacific (APAC) region showcased a mixed but overall positive movement in Zinc Powder (Pharma Grade) pricing during July 2025, primarily led by Indonesia, a key exporter of refined zinc materials.

Price Overview

In Indonesia, the FOB Surabaya price for pharma-grade zinc powder increased from USD 2,795 per metric ton in June 2025 to USD 2,850 per metric ton in July 2025, signaling a 1.9% month-over-month increase. This rebound reversed the mild softening trend observed during late Q2.

Market Fundamentals

1. Rising Export Orders:
   Regional exporters benefited from stronger inquiries from South Asian buyers and pharmaceutical intermediaries. Several importers from India and Vietnam replenished stocks in anticipation of seasonal demand growth.
2. Stable Refining Margins:
   Indonesian producers maintained stable margins despite moderate input cost pressures, supported by competitive electricity tariffs and favorable raw material availability from domestic smelters.
3. Currency Stability:
   The Indonesian Rupiah remained relatively stable against the U.S. dollar, reducing volatility in export quotations and contributing to price stability in FOB markets.

APAC Market Sentiment

Market participants indicated that sentiment remained cautiously optimistic. Regional supply chain normalcy post-Q2 disruptions helped stabilize delivery schedules. Meanwhile, improved demand from the nutraceutical and supplement manufacturing sectors contributed to the firming price index.

APAC Price Index Summary

Overall, the Zinc Price Index in APAC exhibited renewed confidence after a temporary slowdown earlier in 2025.

Global Zinc Market Overview and Comparative Analysis

The global Zinc Price Index showed diverging regional patterns in July 2025. While North America remained under bearish pressure, Europe and APAC displayed stabilization and moderate gains. The trend divergence underscores how supply-demand equilibrium, energy costs, and industrial demand profiles distinctly shape regional markets.

This comparative framework illustrates that while developed markets grappled with inventory pressures and cost dynamics, emerging APAC producers benefited from export-driven stability.

Forecast and Outlook: Q3 2025

Looking ahead to Q3 2025, the Zinc Price Index across regions is expected to experience moderate stabilization, contingent on several macroeconomic and industrial factors.

1. North America:
   The U.S. market may continue to witness mild bearishness through August, though a modest recovery could emerge by September if inventory drawdowns accelerate. Pharmaceutical contract manufacturing demand might rebound with seasonal supplement production upticks.
2. Europe:
   The bullish momentum in Germany and broader EU regions may persist due to structural energy cost challenges. However, demand-side risks remain if end-users opt for deferred procurement to avoid high prices.
3. Asia-Pacific:
   The APAC market, led by Indonesia, may continue to strengthen slightly, supported by rising export orders and stable input costs. The regional price index could see an average 2–3% quarter-over-quarter improvement by the end of Q3.

🌐 🔗 Track real time Zinc and market trends on ChemAnalyst: https://www.chemanalyst.com/ChemAnalyst/PricingForm?Product=Zinc

Conclusion

The Zinc Price Index during July 2025 reflected a globally segmented market environment shaped by divergent regional fundamentals. North America faced sustained pressure from oversupply and weak downstream consumption, while Europe experienced cost-induced inflationary strength. In contrast, APAC showed steady improvement on the back of export resilience and balanced production costs.

Going forward, the zinc market’s trajectory will depend on how quickly inventory rebalancing occurs in North America, energy cost moderation in Europe, and export stability in Asia. Despite near-term volatility, the medium-term outlook for pharma-grade zinc powder remains cautiously optimistic, given its critical role in health, nutrition, and industrial applications.

Contact Us:

ChemAnalyst

GmbH - S-01, 2.floor, Subbelrather Straße,

15a Cologne, 50823, GermanyH

Call: +49-221-6505-8833

Email: sales@chemanalyst.com

Website: https://www.chemanalyst.com/