SHANGHAI, Oct 24 (SMM) - According to the latest data, the exports of unwrought zinc alloy in September 2022 stood at 465.099 mt, a month-on-month increase of 121.23% and a year-on-year decrease of 24.37%. From January to September, China exported 1,612 mt of unwrought zinc alloy, down 61.21% on the year.
The main export determinations were Vietnam (200.26 mt), Taiwan (105.42 mt), and the Philippines (96.41 mt). Exporters in September increased on the month such as China Taiwan and Bangladesh increased their imports of unwrought zinc alloys from China. On the other hand, the Philippines, Pakistan and other countries suddenly increased their imports of unwrought zinc alloys from China. The exports in September jumped to the highest peak in the same period in the past five years.
According to SMM analysis, the increase in the exports of unwrought zinc alloys in September was mainly driven by the strong export willingness of enterprises. Due to the relatively stable price spread between zinc and aluminium, the profits of enterprises stabilised at 400 yuan/mt. Although the SHFE/LME price ratio was relatively high in September, due to weak domestic consumption and excess domestic production capacity, companies actively lowered the prices in order to maintain the health of the capital chain, which drove the exports of unwrought zinc alloys.
In October, considering the outstanding export volume of unwrought zinc alloy in September, the exports in October is unlikely to remain the same as September. However, after experiencing the surge in exports in September, the unwrought zinc alloy exports may remain relatively high in October as the domestic zinc prices may fall.
