SHANGHAI, Sept. 2 (SMM) -

Zinc concentrate

According to China Customs, zinc concentrate imports in July were 197,500 mt, down 13.4% MoM, but up 77.37% YoY. YTD imports through July were up 15.4% YoY, to 1.1935 million mt.

Under liquidity pressure in June, some smelters were more inclined to purchase imported zinc concentrate using L/Cs, but as capital tightness eased and after domestic mines raised TC by RMB 100/mt in the face of zinc concentrate supply surpluses, domestic zinc concentrate had price advantage over imported ores during July.

China sourced zinc concentrate from 23 countries during July, up from 17 countries in June. Import volumes from four countries were above 10,000 mt, but the number of countries supplying this volume was down from six during June. Zinc concentrate imports from Australia during July were 60,000 mt, down sharply from the 113, 000 mt in June, but still supplying 30% of total imports. Ireland was the second largest supplier to China with 26,000 mt in June, but was down 1,400 mt in July. Imports from Peru from June's 30,000 mt grew to 50,000 mt in July, while July imports from India doubled from June levels. Zinc concentrate imports from the top three sourcing countries in July contributed 66.67% of China's total, down slightly from 69.66% in June.

Refined zinc

According to China Customs, China imported 27,600 mt of refined zinc in July 2013, down 9.85% MoM, and down 23.89% YoY. YTD imports were 302,200 mt, up 19.49% YoY.

Although the SHFE/LME zinc price ratio has stayed high around 8 since May, import premiums had been climbing since April, jumping to as much as USD 190-200/mt in July, which caused import losses to expand. Zinc imports thus contracted for the second straight month in July.

Supplies from Spain and Australia dropped sharply by some 8,000 mt, but imports from Australia remained highest with 33%. Imports from South Korea rose from June's 7% to 19%, which is the second largest supplier in June, with Peru coming in third. Spain rank sixth in sourcing countries of China's zinc imports.