Zinc Price Index Update: Latest Market Trend and Forecast

Global Zinc Powder (Pharma Grade) Price Trends – July 2025 Market Analysis

Introduction

The Zinc Powder (Pharma Grade) market across North America, Europe, and Asia-Pacific (APAC) experienced mixed trajectories in July 2025. While oversupply pressures continued to weigh on the U.S. market, leading to further price softness, Germany witnessed a firm upward trajectory supported by stable downstream demand and bullish sentiment. Meanwhile, Indonesia, a significant exporter in the APAC region, saw prices rebound after a temporary softening trend in late Q2.

This article provides an in-depth analysis of Zinc Powder (Pharma Grade) prices in North America, Europe, and APAC during July 2025, focusing on key drivers such as supply dynamics, pharmaceutical demand, trade flows, and broader macroeconomic factors.

North America Market Overview

Price Index Decline in the U.S.

In July 2025, the Price Index for Zinc Powder (Pharma Grade) in the U.S. continued its downward trajectory. The decline was primarily driven by persistent oversupply in the domestic market and sluggish downstream pharmaceutical demand across major consuming states such as California, Texas, and New Jersey.

Producers reported elevated inventories as supply outpaced demand, particularly in regions with significant pharmaceutical manufacturing hubs. Import flows remained stable, further aggravating the oversupply scenario and creating downward pressure on the market.

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Demand-Side Challenges

The pharmaceutical industry in the U.S. faced multiple challenges during July:

• Slower formulations uptake: Demand for zinc-based excipients in pharmaceutical and nutraceutical products weakened due to reduced purchasing activity by formulators.
• Price sensitivity in end-use industries: With alternative supplements and raw materials available, buyers remained cautious in securing large volumes of Zinc Powder.
• Summer production slowdowns: Several downstream facilities reduced operating rates during July, further reducing consumption.

These demand-side constraints compounded the supply glut, keeping the Zinc Powder (Pharma Grade) Price Index under bearish pressure.

Supply and Inventory Conditions

On the supply front, producers maintained steady output despite soft demand, creating an imbalance. Inventory accumulation at distributor and manufacturer levels was reported in multiple U.S. states. Export opportunities also remained limited, as key markets such as Latin America and Canada displayed tepid buying interest.

The surplus situation led several traders to offer discounted contracts for bulk purchases, signaling further softness in near-term pricing.

Market Sentiment in North America

Overall sentiment in the U.S. market during July 2025 remained bearish. Traders and distributors expected the downtrend to persist unless significant downstream recovery occurred in the pharmaceutical and nutraceutical sectors.

Europe Market Overview

Germany’s Firm Upward Trajectory

In stark contrast to the U.S., the Zinc Powder (Pharma Grade) Price Index in Germany rose steadily in July 2025. The German market witnessed bullish sentiment, supported by:

• Robust demand from pharmaceutical industries, particularly for excipients and dietary supplements.
• Tighter availability due to controlled production and leaner import flows.
• Stable economic conditions that favored consistent procurement activity.

The German pharmaceutical sector remained resilient, underpinned by strong export demand for finished drugs, which in turn supported raw material purchases.

Key Drivers of Price Strength

Several factors contributed to Germany’s upward trend:

1. Controlled domestic output: Producers limited output to maintain price stability, avoiding oversupply.
2. Sustained pharmaceutical demand: Healthcare and wellness product demand remained strong, with zinc-based formulations retaining steady market share.
3. European Union market support: Neighboring EU countries also displayed firm demand, particularly in Central and Western Europe, creating a broader supportive environment.

Supply Chain Dynamics

While imports of Zinc Powder from APAC remained stable, logistics costs and extended lead times discouraged excessive reliance on overseas suppliers. This provided additional support to domestic suppliers, who capitalized on the situation by firming prices.

Germany’s upward price movement also signaled broader European bullishness, as other key hubs like France and Italy saw modest gains aligned with the German trajectory.

Market Sentiment in Europe

The sentiment across Germany and broader Europe was optimistic, with market participants confident that prices would remain firm through early Q3 2025. Buyers continued to secure forward contracts to hedge against potential price increases in subsequent months.

Asia-Pacific (APAC) Market Overview

Indonesia’s Price Rebound

In the Asia-Pacific region, FOB Surabaya (Indonesia) prices for Zinc Powder (Pharma Grade) increased in July 2025 compared to June levels. This upward movement reversed the brief softening trend seen in late Q2, signaling renewed market strength.

Indonesia plays a pivotal role as a regional exporter, supplying Zinc Powder to multiple Asian and Middle Eastern markets. The July rebound was attributed to:

• Improved export demand from neighboring APAC countries.
• Stabilized downstream consumption within Indonesia’s domestic pharmaceutical and supplement sectors.
• Favorable trade conditions, as freight rates normalized compared to the volatility observed earlier in 2025.

Drivers of Market Recovery

1. Export momentum: Buyers from India, Vietnam, and Malaysia actively procured Zinc Powder during July, pushing up FOB values.
2. Domestic stability: Indonesian pharmaceutical manufacturers improved procurement levels after a period of reduced purchasing in Q2.
3. Supply alignment: Producers aligned output more closely with demand, reducing the risk of oversupply.

Regional Context

Beyond Indonesia, other APAC markets such as China and India displayed mixed trends. While China’s domestic demand remained subdued, India experienced moderate growth in zinc powder consumption due to rising supplement and nutraceutical formulations. This divergence created a dynamic regional landscape, with Indonesia’s rebound serving as a positive outlier.

Market Sentiment in APAC

The overall sentiment in APAC during July 2025 was cautiously bullish. While Indonesia’s rebound set a positive tone, participants remained mindful of potential demand fluctuations in China, which continues to exert a strong influence over regional trade flows.

Comparative Analysis Across Regions

Divergence Between North America and Europe

The most striking feature of July 2025 was the divergence between the U.S. and Germany. While the U.S. market faced oversupply and bearish pressure, Germany experienced price firmness and bullish momentum. This divergence highlights the role of regional supply-demand balances and pharmaceutical sector health in shaping market outcomes.

APAC’s Role in Global Balancingz

Common Influences and Contrasts

• Oversupply vs. tightness: The U.S. faced excess supply, while Germany and Indonesia benefited from tighter balances.
• Pharmaceutical demand: Strong in Germany, stabilizing in Indonesia, but weak in the U.S.
• Trade flows: Stable but limited opportunities for U.S. exports, while APAC leveraged export momentum to lift prices.

Outlook for Q3 2025

North America

In the U.S., unless pharmaceutical demand recovers significantly, prices are likely to remain under pressure through Q3 2025. Oversupply and inventory buildup could prolong bearishness, though production adjustments may offer temporary relief.

Europe

Germany and broader Europe are expected to sustain bullish momentum into Q3. Strong pharmaceutical demand, controlled supply, and favorable intra-EU trade conditions will likely continue supporting prices.

APAC

Indonesia’s rebound is expected to stabilize further, with FOB Surabaya prices maintaining strength into early Q3. However, regional demand fluctuations—particularly in China—will play a decisive role in shaping broader APAC trends.

Conclusion

The global Zinc Powder (Pharma Grade) market in July 2025 presented a contrasting regional picture:

• North America (U.S.): Bearish trajectory driven by oversupply and lagging pharmaceutical demand.
• Europe (Germany): Bullish momentum supported by strong demand and controlled supply.
• APAC (Indonesia): Rebound in FOB Surabaya prices reversing earlier softness, aided by export demand.

These developments highlight the regional sensitivities of the Zinc Powder (Pharma Grade) market, where supply-demand balances, pharmaceutical industry health, and trade dynamics play critical roles. As the industry moves into Q3 2025, participants across all regions will closely monitor demand recovery, export flows, and inventory management to gauge the future trajectory of prices.

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