Our markets in Europe remain uncertain and volatile. Global demand for building materials, such as steel and zinc, and transportation services were high during 2022 but are now decreasing. Order intake and sales volumes fluctuate depending on the Business Unit. Sharp fluctuations in steel and zinc prices, higher energy costs and wage increases affect our margins and require more agility in our pricing models.

Zinc prices

Developments in zinc markets in 2022 show a gradual upward trend with a strong peak at the end of April. At the beginning of the financial year, the zinc price was US$3,600 per tonne and after a steady increase to nearly US$4,500 per tonne, the zinc price landed just above US$3,000 per tonne at the end of the financial year. In the first two months of 2023, the zinc price was volatile.

The zinc price has an opposite effect on the figures of our Business Units Rotocoat, Prestia and Rezinal. On the one hand, the rising zinc price negatively impacts the cost of sales due to the higher purchase price for zinc. On the other hand, sales are also affected by the rising zinc price. The zinc price on the London Metal Exchange (LME) is closely monitored following a fixed purchase strategy.

LME zinc price per tonne 2022