What compound do I use or is wet sanding needed? I have a power sander/polisher also.

 

That's clearcoat failure. Needs a repaint. No rubbing compound will bring back shine. Very, very, very common on 90s hondas.

You could try wetsanding away the "oxidation" to fresh clear coat and applying opti-coat or even a new clearcoat and then blending in but that's a temporary fix at best.

 

It's a 03 TL . What grit you recommend sanding with?

 

damn, shitty. I hate when this happens. I assume this is what happened to my 94 accord ex, cause when i bought it they painted it matte black! im now going through the hassle of doing all the body working and trying to get it re-painted properly!

 

Can you post a bigger picture of it and the surround area OP?

 

400 grit wet or dry then a grey scotch with some soap and water. some use 600 after 400 but both work fine. make sure to rinse good so there is no soap left on panel. wax grease remover, seal, base, clear , yodda yodda