Zinc Oxide Import and Export Decreased MoM in May, What About June? [SMM Analysis]

In terms of exports

According to the latest customs data, in May 2024, zinc oxide exports were 1,010.72 mt, down 7.84% MoM and down 31.13% YoY from 1,467.65 mt in May 2023. The cumulative zinc oxide export volume from January to May 2024 was 4,683.87 mt, down 34.60% YoY from the cumulative volume from January to May 2023. The data shows that zinc oxide exports decreased both MoM and YoY, and the export level from January to May this year was lower than last year.

By country, in May 2024, Vietnam imported 345.85 mt of zinc oxide from China, accounting for 34.22% of China's total zinc oxide exports in May, maintaining the first position, with both MoM and YoY data declining. Thailand imported 285 mt of zinc oxide from China, accounting for 28.2% of the total zinc oxide exports in May, ranking second, with both MoM and YoY data increasing. The Philippines imported 144.02 mt of zinc oxide from China, accounting for 14.25%, ranking third, with both MoM and YoY data significantly increasing. Russia and Japan followed closely.

Overall, firstly, the SHFE/LME zinc price ratio started to rebound from a low level in late May, slightly reducing the domestic zinc oxide price advantage. Secondly, the international situation has not improved, and ocean freight continues to rise, increasing import costs and impacting zinc oxide exports. As a result, zinc oxide exports in May weakened slightly MoM. Looking ahead to June, some small and medium-sized zinc oxide producers are expected to halt production due to poor orders and high raw material prices compressing profits. As a result, zinc oxide operations are expected to run weakly, and zinc oxide exports in June may not show significant improvement.

In terms of imports
According to customs data, in May 2024, China's zinc oxide imports were 362.31 mt, down 40.91% MoM and down 17.44% YoY from 438.85 mt in May 2023. The cumulative zinc oxide import volume from January to May 2024 was 2,556.40 mt, up 19.97% YoY from the cumulative volume from January to May 2023. Zinc oxide imports decreased both MoM and YoY in May.