Zinc oxide

Zinc Oxide Market Intelligence Report (July 8, 2026)

I. Price Trends
1. Domestic Market
- Indirect-Process Zinc Oxide (ZnO ≥ 99.7%):
Jiangsu Region Average Price: RMB 22,310/ton (as of July 3, unchanged from the previous day);
Shandong Region Average Price: RMB 22,255/ton;
Hebei Region Average Price: RMB 22,210/ton;
Guangdong Region Average Price: RMB 22,650/ton.
- Direct-Process Zinc Oxide (99% purity):
Hebei Region Average Price: Approximately RMB 19,000/ton (exact figure not fully disclosed; consistently lower than indirect-process grades).
- Price Volatility Characteristics:
Recent prices have exhibited narrow-range oscillation; indirect-process grades command a significant price premium over direct-process grades due to superior purity and more advanced production technology;
Prices in Jiangsu are slightly higher than those in Shandong and Hebei, reflecting regional supply-demand imbalances and logistics cost differentials.

2. International Market
- Global zinc oxide price range: USD 3,800–4,000/ton (approx. RMB 27,000–28,500/ton, based on current exchange rate);
- Key price drivers: Global supply-demand dynamics, exchange rate fluctuations, and trade policies (e.g., EU environmental regulations affecting export compliance).

II. Supply-Demand Dynamics
1. Supply Side
- Raw Material Constraints: Tight supply of zinc ingots continues to push up production costs for zinc oxide; some manufacturers have passed on cost increases via price hikes;
- Capacity Differentiation:
Indirect-process zinc oxide capacity is concentrated among large enterprises with high technological barriers, ensuring relatively stable supply;
Direct-process zinc oxide production is dominated by small- and medium-sized enterprises, offering greater operational flexibility but exhibiting inconsistent product quality.
- Environmental Pressures: Stricter domestic environmental regulations have led to temporary shutdowns and rectifications at non-compliant facilities, resulting in short-term supply contraction.

2. Demand Side
- Domestic Demand:
Rubber Industry: Steady demand for high-activity zinc oxide as a vulcanization accelerator in tires, conveyor belts, and other rubber products;
Ceramics & Coatings Industries: Demand for general-purpose zinc oxide remains subdued due to cyclical weakness in the real estate sector;
Pharmaceutical & Electronics Industries: Growing demand for high-purity zinc oxide, though its overall market share remains limited.
- International Demand:
Reviving manufacturing PMIs in Europe and the U.S. have boosted export demand for zinc oxide (Vietnam and Thailand rank among top importers);
EU environmental regulations restricting high-dose zinc oxide applications have prompted some export orders to shift toward Southeast Asian markets.

III. Market Drivers
1. Cost Push: Elevated zinc ingot prices—compounded by rising energy and transportation costs—have kept zinc oxide production costs persistently high;
2. Policy Impact:
Domestic environmental policies are accelerating industry consolidation and phasing out outdated capacity;
The EU’s ban on high-dose zinc oxide in animal feed has altered order structures for related exporting enterprises;
3. International Trade: Fluctuations in the Shanghai-London zinc price ratio affect import/export profitability; recently, low-priced overseas zinc oxide has exerted competitive pressure on the domestic market.

IV. Market Assessment
1. Short Term (1–3 months):
Prices likely to trend upward with volatility: Strong raw material cost support makes price declines unlikely, although weak demand will cap upside potential;
Regional price divergence expected to intensify: Coastal regions such as Jiangsu and Guangdong—benefiting from export advantages—may lead national price gains.
2. Medium to Long Term (6–12 months):
Supply structure optimization: Environmental regulation-driven industry consolidation is expected to raise market concentration and increase the share of indirect-process zinc oxide;
Structural demand growth: Sustained demand growth from rubber and electronics sectors for high-purity zinc oxide will drive product upgrading and value enhancement.

V. Outlook & Recommendations
1. Price Forecast:
Domestic average price for indirect-process zinc oxide likely to remain within RMB 22,000–23,000/ton;
Direct-process zinc oxide prices may decline further to RMB 18,500–19,500/ton amid intensified cost pressures.
2. Risk Alerts:
Significant volatility in zinc ingot prices;
Escalation of international trade tensions (e.g., anti-dumping investigations);
Unexpected sharp slowdown in domestic demand.
3. Strategic Recommendations:
Downstream Users: Procure according to actual needs; monitor alternatives to high-activity zinc oxide (e.g., nano-zinc oxide);
Traders: Optimize inventory mix by increasing allocation to indirect-process products;
Producers: Enhance environmental compliance investments and expand into high-value-added segments (e.g., pharmaceutical-grade zinc oxide).