Zinc is a brittle crystalline chemical element and does not rust easily like iron and other metals. Owing to the versatile and favorable chemical properties of Zinc Chemical, its application in the automotive, agriculture, and construction industries is rising rapidly.
Based on Zinc Chemicals demand by type the Zinc Chemicals market is segmented by Zinc Oxide, Zinc Sulfate, Zinc Chloride, and Zinc Carbonate. Zinc Oxide is the largest type accounting for more than 55% of the market share followed by Zinc Sulfate (30%), Zinc Chloride (10%), and Zinc Carbonate (5%). Zinc Oxide is used as a vulcanization agent in rubber compounding. The growing demand for electric vehicles is expected to drive the demand for automotive tires, boosting the consumption of tires in the automotive industry, which will positively impact the Zinc Chemical market.
On the basis of applications, the Zinc Chemicals market is bifurcated by Agriculture, Glass & Ceramics, Chemicals, Rubber compounds, Textiles, Paints & Coatings, and Food & Pharmaceuticals. The rubber compounding holds the largest share accounting for more than 40% of the market demand and is anticipated to dominate in the forecast period as well. Zinc Chemicals are widely used in the galvanization and manufacturing of tires.
Asia Pacific region dominates the market owing to the strong presence of End-Use industries such as Agriculture and Automotive. In China and India, demand for Zinc Chemicals is increasing due to the growing agrochemical industry. Low cost and easy availability of chemical fertilizers are the key factors for the growth of the Zinc Chemicals market. Zinc sulfate is commonly used as a fertilizer additive in chemical fertilizers. Asia-Pacific countries like China, India, Japan, South Korea, and Thailand are the primary producers of automobiles; hence the requirement for the zinc chemical market is projected to increase from this region in the forecast period.
Asia Pacific is the largest automobile market with countries like China, Japan, India, South Korea, and Thailand being the primary manufacturers. The rising demand for automotive will boost the demand for tires therefore the requirement for Zinc Chemicals is anticipated to increase in the upcoming years.
These companies are renowned for their high-quality zinc chemical products and are major suppliers globally.
In March 2021, Zinc Nacional announced that the company will expand its production capacity by building a 7 Kiloton French Process zinc oxide facility in Mexico, and 10 Kiloton facility in the USA.
Rising demand for Fertilizers
Zinc is a fundamental micronutrient required for the growth and development of plants, animals, and human beings. The population has doubled in the last 30 years and is anticipated to reach 9 billion by 2050. Around 50% of the soil in the world is zinc deficient; therefore, zinc is added to agricultural land to increase the yields and to cater to the growing demand for food and grains. The rising awareness of the benefits of zinc used in food and nutritional supplements will positively impact the Zinc Chemicals market in the upcoming years.
Zinc oxide is used as an inorganic fertilizer where it is directly applied to soils to correct zinc deficiency, root dipping, and seed coating, commonly used for the cultivation of fruit trees and grape vines.
The price of ores to produce zinc chemicals has increased due to the scarcity of zincate ores, which are needed to make zinc chemicals such as zinc oxide, zinc sulfate, and zinc chloride. The rise in zinc prices will impact the demand-supply balance of the Zinc Chemicals market. The shortage of raw materials will also drive the production costs and market prices for Zinc Chemicals.
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