China Zn Products Imports and Exports Data Analysis October 2013

SHANGHAI, Dec. 2 (SMM) –

Refined zinc
China Customs reports zinc imports in October were 74,400 mt, up 126.47% YoY and 23.09% MoM. YTD imports through October were 489,300 mt, up 19.89% YoY.

SMM sources report many smelters that had conducted maintenance restarted production in October, with TC for ore standing at a record high for the year. SMM statistics show the average price of #0 zinc in October was RMB 15,089.44/mt, up RMB 233.65/mt on the month, which also boosted smelters interest to produce. Despite growing domestic zinc output, zinc imports were not curbed. SMM sources report that the SHFE/LME zinc price ratio returned to 8 during mid-September and mid-October, up from 7.7-7.8, which created profit for importers and drove up imports in October to a record high since June 2009. Import premiums were also pushed up from USD 180/mt in September, to USD 190/mt.

Zinc imports from Belgium grew further by 84.71% MoM in October, to 18,200 mt, the highest for the second consecutive month. Large amounts of Belgian zinc arrival significantly impacted domestic #1 zinc market. Zinc imports from Australia grew to 10,000 mt, up 220% MoM. Imports from India were the third highest, with 8,000 mt. No Netherlandish zinc was imported.

Zinc concentrate
China Customs report that China imported 158,800 mt of zinc concentrate in October, up 32.65% MoM, but down 21.58% YoY. YTD imports through October were 1.64 million mt, up 3.52% YoY.

SMM sources report that zinc concentrate imports in October leapt 30% due to three reasons. First, the SHFE/LME zinc price ratio rose above 8 since mid-September, which helped expand importers' profit and boosted imports. Second, domestic smelters actively building stocks for winter production drove up zinc concentrate imports. Third, some enterprises were forced to choose imported zinc concentrate due to domestic capital tightness. But imported zinc concentrate still lacked competitiveness despite domestic supply surplus, falling for the third straight month.

17 countries supplied zinc concentrate to China in October, down 2 from September. Zinc concentrate imports from Australia, Mongolia and Peru were the highest, which made up 74% in the total, and up 10% from September's. Imports from Australia surged to 94,400 mt, up 331.1% MoM from 21,900 mt. imports from Mongolia grew to 13,100 mt, up 44% MoM, while imports from Peru fell further by 32,600 mt, to 10,000 mt, a drop of 76.5%. Zinc concentrate imports in October grew as imports from Australia jumped noticeably.