Zinc oxide exports decreased and imports increased in April [SMM Analysis]

Exports

According to the latest customs data, China's zinc oxide exports in April were 1,096.65 mt, up 21.16% MoM but down 25.14% YoY. The total exports in January-April were 3,673.15 mt, down 35.49 percentage points YoY.

Vietnam imported 489.91 mt of zinc oxide from China, accounting for 44.67% of the total in April, maintaining the first position. Thailand imported 212.17 mt, accounting for 19.35%, holding the second position. The Philippines imported 100.23 mt, accounting for 9.14%, jumping to the third position. Exports to Vietnam remained stable, to the Philippines significantly increased, and to Japan slightly decreased. Overall, China’s zinc oxide exports were weak.

SMM analyzed the reasons for the weak zinc oxide exports in April as follows:

1) Companies that have relocated overseas gradually ramped up production, encroaching on the export share of some domestic companies;

2) The domestic consumption market remained relatively good, with end-user demand still present. Companies found that exports yielded less profit after accounting, due to differences between international and domestic standards. In addition, raw material supply tightness for domestic producers caused a reduction in overseas orders.

Entering May, domestic raw materials remained tight, elevating zinc oxide raw material costs. The domestic market did not see significant fluctuations. Zinc oxide exports in May may slightly decrease.

Imports

According to customs data, China's zinc oxide imports in April 2024 were 613.18 mt, up 67.43% MoM and 12.92% YoY. The total imports in January-April were 2,194.09 mt, up 29.67 percentage points YoY. The significant increase in zinc oxide imports was mainly due to the price advantage of overseas zinc oxide amid a decline in the SHFE/LME tin price ratio, together with decent domestic end-user consumption.