For the Quarter Ending September 2024
North America
The Q3 2024 period has been robust for Zinc Ingot pricing in the North America region, characterized by a sharp increase from the same quarter last year. This uptrend was influenced by a confluence of factors. Supply constraints due to ongoing supply chain disruptions globally have led to a temporary reduction in zinc ingot availability, exerting upward pressure on prices.
Moreover, logistical challenges, raw material shortages, and transportation delays have exacerbated the supply-side bottleneck, contributing to the price surge. On the demand side, resilience in consumption from key downstream sectors like construction has helped counterbalance supply disruptions, maintaining the upward pricing trend.
Within the USA, which experienced the most significant price changes, the quarter saw a 1% increase from the previous quarter. Notably, a 4% price difference between the first and second half of the quarter was observed. The latest quarter-ending price for Zinc Ingot in the USA stood at USD 3412/MT CFR Illinois Port, reflecting a consistent increasing sentiment in the pricing environment.
APAC
Asia's zinc ingot market demonstrated notable resilience in Q3 2024, with South Korea emerging as a key player in the regional landscape. The quarter showcased distinct market dynamics, with South Korea experiencing a 6% uptick between the first and second half, culminating in a positive 7% change from the previous quarter. The Asian market, particularly South Korea, exhibited a complex interplay of supply and demand forces throughout the quarter. Korea Zinc, a major industry player, maintained strong production levels despite facing ownership disputes that introduced an element of uncertainty to the supply chain. The demand side showed remarkable diversity, with initial strength in infrastructure and aerospace sectors, followed by a temporary lull in automotive and construction activities mid-quarter. The quarter concluded on a positive note, driven by robust performance in the housing and galvanizing sectors, supported by increased household lending. However, new government interventions in mortgage regulations emerged as a potential moderating factor. These market dynamics, coupled with strategic partnerships and sector-specific developments, shaped the quarter's trajectory. At the end of the quarter, Zinc ingot prices in South Korea closed at USD 3100 per metric ton FOB Busan.
Europe
Throughout Q3 2024, the Europe region witnessed a notable increase in Zinc Ingot prices, driven by a combination of factors influencing the market dynamics. The quarter has been characterized by a complex interplay of supply constraints and rising demand, leading to a significant uptick in prices. Supply disruptions, such as production cuts at key facilities and tightening raw materials supply chains globally, have contributed to the supply-side challenges. On the demand front, sectors like construction and manufacturing have shown varying levels of activity, impacting on the overall demand for Zinc Ingots. The quarter saw a 2% increase in prices compared to the previous quarter, indicating a positive trend in the market. Germany, experiencing the most significant price changes, has seen price an increase of 4% in the second half of the quarter as compared to the first. As the quarter concluded, the latest price stood at USD 3615/MT FD-Koblenz in Germany, reflecting a consistently increasing pricing environment driven by a combination of supply and demand factors.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Zinc Ingot market experienced a notable increase in prices, driven primarily by supply chain disruptions and augmented demand dynamics. The quarter saw significant influences on market prices, including logistical challenges, elevated freight costs, and fluctuating metal supply due to global geopolitical tensions. The interplay of these factors created a complex pricing environment characterized by tight supply chains and a resilient demand structure.
Exclusively within the USA, the Zinc Ingot market depicted pronounced price volatility, reflecting the highest price changes in the region. The overall trends indicated a robust market sentiment with seasonality effects contributing to the fluctuations. The correlation in price changes highlighted the impact of limited supply and consistent demand across various industrial sectors, notably construction and automotive industries. Additionally, the price comparison between the first and second half of the quarter revealed a 3% increment, substantiating the progressive hike in prices.
Concluding Q2 2024, the quarter-ending price for Zinc Ingot (99.9%) CFR Illinois Port stood at USD 3375/MT, underscoring a positive pricing environment throughout the quarter. The consistent rise was largely due to constrained supply channels and increased demand, reflecting a bullish market sentiment. This period has proven favourable for stakeholders, marking a significant phase of price elevation in the Zinc Ingot market.
Europe
The second quarter of 2024 presented a dynamic landscape for Zinc Ingot pricing in the European market, marked by a nuanced interplay of supply and demand factors. The quarter witnessed an overall positive sentiment, driven by a variety of influences. A notable rise in global market prices and an increase in demand from critical industries like automotive and electrical were significant drivers. The sustained robustness of the electric vehicle segment and the heightened need for corrosion-resistant steel products underscored the upward pricing trajectory. Additionally, geopolitical tensions, notably the imposition of sanctions on Russian metal supplies and disruptions in freight logistics, further compounded supply constraints, contributing to higher prices.
Focusing on Germany, the country experienced the most pronounced price shifts within the region. The pricing trends exhibited a clear seasonal pattern with a marked increase in the second half of the quarter, reflecting a 4% rise compared to the first half. This trend underscores a strong demand uptick towards the latter part of the quarter, likely fuelled by strategic stockpiling and anticipation of continued supply challenges.
The latest quarter-ending price for Zinc Ingot (99.9%) in FD-Koblenz, Germany, was recorded at USD 3503/MT, encapsulating the upward trend seen in the latter part of the quarter. Despite the stable quarter-over-quarter change, the overall market sentiment in Germany was positive, driven by a consistent alignment of demand factors and a strategic response to supply chain disruptions. The increasing prices reflected a market environment that, although fluctuating, trended positively in the context of broader economic and industrial dynamics.
APAC
In the APAC region, Q2 2024 has witnessed a consistent increase in Zinc Ingot prices, driven by several critical factors. Key among these has been the supply-demand imbalance exacerbated by production constraints and rising industrial demand. The global demand surge, particularly from the automobile and construction sectors, coupled with supply chain disruptions, has placed upward pressure on prices. Additionally, the slowdown in zinc imports and the overall tightening of raw material markets have further influenced the pricing dynamics.
Focusing on Japan, the country has experienced the most significant price changes in this period. The overall trend in Japan points towards a robust pricing environment. Seasonality factors, such as increased production activities in response to favourable market conditions and heightened industrial demand, have played a substantial role in this trend. The price comparison between the first and second half of the quarter shows a 2% increase, underscoring the consistent upward trajectory.
The latest quarter-ending price for Zinc Ingot (SHG-99% Pure) Ex Tokyo stands at USD 2869/MT, reflecting an overall positive sentiment in the pricing environment. The sustained demand and strategic market responses have kept prices buoyant, highlighting a period of growth and stability for the zinc ingot market in Japan.
For the Quarter Ending March 2024
North America
The North American region witnessed a mixed pricing environment for Zinc Ingot during Q1 2024. Several factors influenced market prices, including the decline in mining and production rates, tightening supply, and increased industrial demand. The overall trend for Zinc Ingot prices in the region was on an upward trajectory.
In the US, the third week of February witnessed steady pricing of Zinc Ingot in the local market, driven by a slight rise in inventories as mining rates decreased in neighbouring major mines. Despite a slightly challenging situation in the automotive sector, the US metal market experienced a surge in industrial demand, particularly as anticipation of a rate reduction by the Federal Reserve strengthened prospects for base metal inputs. In February and early March 2024, the US metal market experienced resilience in economic activities despite high inflation and modest growth in automotive sales. However, the US construction market faced challenges due to winter dullness and low domestic and international demand, leading to a persistently declining construction spending.
Moreover, the market continued to contract in mid-March, with concerns about imports in the face of low demand domestically. Furthermore, there was a price comparison between the first and second half of the quarter, showing a slight decline. This could be attributed to seasonal factors or short-term fluctuations in supply and demand dynamics. Overall, the pricing environment for Zinc Ingot in the North American region, particularly in the USA, has been positive during Q1 2024. Factors such as tightening supply, increased industrial demand, and recovery from previous year's declines have contributed to the upward trend in prices.
Asia-Pacific
The pricing environment for Zinc Ingot in the APAC region during Q1 2024 has been largely stable, with some notable fluctuations in certain countries. Overall, factors such as supply and demand dynamics, global market conditions, and industry-specific factors have influenced market prices. In Japan, the pricing of Zinc Ingot has seen significant changes during the quarter. The market has been primarily influenced by low demand from downstream industries, particularly in the automotive sector. This decline in demand has led to a decrease in prices. Additionally, economic uncertainties and geopolitical concerns have contributed to the cautious approach of buyers, further impacting prices. The price changes in Japan have also been influenced by seasonal trends. The first half of the quarter saw a decline in prices, while the second half experienced a slight recovery. This can be attributed to factors such as production adjustments, inventory levels, and market competitiveness. Compared to the same quarter last year, the prices of Zinc Ingot in Japan have decreased by a significant percentage. This decline can be attributed to the challenging market conditions, including low demand and excess supply. Overall, the pricing environment for Zinc Ingot in the APAC region has been negative, with prices experiencing declines in certain countries due to low demand, economic uncertainties, and geopolitical concerns. However, some stability and slight recovery have been observed in Japan towards the end of the quarter.
Europe
The Europe region witnessed a challenging first quarter of 2024 for Zinc Ingot pricing, with significant factors impacting market prices. Overall, the market experienced a downward trend, with prices declining compared to the same quarter last year. The previous quarter in 2024 also saw a decrease in prices. Germany, in particular, experienced the maximum price changes in the region. The market conditions in Germany were influenced by several factors, including a slowdown in production both locally and overseas, and lower demand from downstream sectors. leading to a surplus supply of Zinc Ingot. The declining economy in Germany further contributed to the negative pricing environment.
Seasonality played a role in the price changes, with a slight decrease observed between the first and second half of the quarter. This decline can be attributed to the persisting market trend for Zinc Ingot in Germany, as well as concerns among market players regarding the overall economic situation. In summary, the first quarter of 2024 has been characterized by decreasing prices for Zinc Ingot in the Europe region, particularly in Germany. The market has been influenced by factors such as surplus supply, a declining economy, and persisting market trends. Overall, the pricing environment has been negative and stable, with prices experiencing significant declines compared to previous periods.
For the Quarter Ending December 2023
North America
In the last quarter of 2023, the price of Zinc Ingot experienced an overall inclining trend in the US spot market. Initially, in October, the prices experienced a declining market trend across the USA as the production rate was higher by the end of the previous quarter. The major mining company, Nexa Resources, underwent an increase in Zinc extraction rate at the end of the third quarter, marking 8% growth from the previous quarter's data. This severely affected the price trend for Zinc Ingot in the US spot market.
Furthermore, in the other half of the last quarter, the trade disruptions and reduction in extraction rate amidst harsh winter weather lowered the supply of Zinc Ingot in the US spot market. The supply hindrance from the overseas market was observed as the previous Panama Canal drought continued to create a worrying situation among the buyers. Furthermore, the attacks carried out by the Houthi rebel group further increased the risk of shipping cargo, among the major traders in the USA and overseas.
The downstream demand from the construction and infrastructural development industries lacked interest as the winters and holiday period provoked the buyers to place low orders on a need-on-demand basis. Overall, the price of Zinc Ingot remained on an increasing trend in the last quarter. The final price for Zinc Ingot (99.9%) DEL Chicago in the USA ended at 3240/MT in December 2023.
APAC
At the end of 2023, the Zinc Ingot market showed an overall stable trend in the Japanese spot market as the firm downstream demand, coupled with the uncertain macroeconomic concerns across the globe, affected the price trend. Initially, the price of Zinc Ingot declined in October as the surplus supply across the globe backed the declining price trend. The Zinc extraction rate was on a higher edge, as the mills were mining at a higher rate. Meanwhile, the Japanese economy retained stability amidst a global surge in inflation, as utility companies tend to secure long-term supply contracts, which in turn stabilizes energy costs. This kept the inflation rate at a relatively lower level in Japan concerning the rest of countries across the globe. The demand from the downstream battery industries remained firm, resulting in overall stability in prices as Zinc-based batteries were expected to be an alternative to Lithium-ion batteries amidst the latest technological developments. Furthermore, the trade disruption created a fear of supply scarcity in the Japanese warehouses, amidst trade disruption through the Panama Canal and Red Sea route. The final price for Zinc Ingot (SHG-99% Pure) Ex Tokyo in Japan settled at USD 2738/MT in December.
Europe
In the fourth quarter of 2023, the price for Zinc Ingot declined in the German spot market as the demand from the downstream industries plunged amidst weak economic factors. In October, the Zinc Ingt prices initially declined as the supply rate got surplus, along with the increased Zinc extraction rate in the domestic and overseas mining regions. The weak economic condition severely affected the demand from the buyer's side as the lingering inflation rate and a manufacturing slump were expected to shrink further by 0.5 percent in the second half of Q4. The demand from the downstream automotive and construction industries fell as the housing sector plunged amidst lower sales rates, along with the later removal of electric vehicle subsidies by the German government in December. Downstream construction and infrastructure demand weakened as winter interrupted manufacturing processes. By the close of 2023, Zinc Ingot prices in the German spot market stabilized with a slight declining trend due to supply risk, caused by the trade disruptions through the Red Sea and Panama Canal route. The overall trend for Zinc Ingot prices showed a declining trend in the last quarter of Q4,2023. The final price for Zinc Ingot (99.9%) FD-Koblenz in Germany settled at USD 3866/MT in December.
