Zinc Oxide Exports Decrease in April, Imports Increase [SMM Analysis]

In terms of exports

According to the latest customs data, zinc oxide exports in April 2024 were 1,096.65 mt, up 21.16% MoM, but down 25.14% YoY. Cumulative zinc oxide exports from January to April 2024 were 3,673.15 mt, down 35.49 percentage points YoY compared to the cumulative volume from January to April 2023, showing a downward trend in zinc oxide exports.

By country, in April 2024, Vietnam imported 489.91 mt of zinc oxide from China, accounting for 44.67% of China's total zinc oxide exports in April, ranking first. Thailand imported 212.17 mt, accounting for 19.35%, ranking second. The Philippines imported 100.23 mt, accounting for 9.14%, ranking third. Compared to the cumulative zinc oxide export volume in March 2024, trade with Vietnam remained stable, the Philippines saw a significant increase, and Japan saw a slight decrease. Overall, zinc oxide exports were relatively weak.

SMM attributes the weak zinc oxide exports in April to the following factors:

1. Companies relocating overseas gradually released production capacity, encroaching on the export share of some domestic companies.

2. Companies had less profit in exports, and there are differences between international and domestic standards. Together with relatively tight raw materials for domestic companies, overseas orders were reduced.

Entering May, domestic raw materials remain tight, and the cost of zinc oxide raw materials is gradually increasing. The domestic market has not seen significant fluctuations, and zinc oxide exports in May may slightly decrease.

In terms of imports

According to customs data, zinc oxide imports in April 2024 were 613.18 mt, up 67.43% MoM and 12.92% YoY. Cumulative zinc oxide imports from January to April 2024 were 2,194.09 mt, up 29.67 percentage points YoY. SMM analyzes that the main reason is the decrease in the SHFE/LME zinc price ratio, making overseas zinc oxide more cost-effective. This, together with a moderate domestic end-user market, increased import demand.