China Zinc Concentrate Products Imports Fall 42.9% YoY May 2014

SHANGHAI, May. 31 (SMM) –

Refined zinc
China Customs reported that China imported 48,700 mt of zinc during May, down 12.09% YoY, and 24.79% MoM.
　
Import losses were now above RMB 1,000/mt since the SHFE/LME zinc price ratio hovered between 7.2-7.5 during April and May, causing imports to fall for a second straight month. In addition, cash flows were considered relatively strong throughout May due to capital flowing back into the banking sector and high new forex receipts in April, but which also undermined demand for finance-driven imports.

Australia, Kazakhstan, Spain, and Peru were China's four largest suppliers of zinc during May, with zinc imports of 15,400 mt, 12,400 mt, 9,800 mt and 4,900 mt, respectively, and which accounted for 85.1% in total imports. Imports from Australia fell in May by 6,000 mt, imports from Kazakhstan were down by 7,400 mt, but imports from Spain grew by 4,700 mt. Namibia, the third largest supplier to China in April, exported no zinc to China during May.

Zinc concentrate
China Customs report China's zinc concentrate imports in May were 107,200 mt, down 14.8% MoM and 42.9% YoY.

Zinc concentrate imports have been sliding since early 2014, with imports in May hitting a record low for the year. SMM sources report import losses since the SHFE/LME zinc price ratio hovered between 7.2-7.5 during April and May, and imported zinc concentrate was unpopular due to sufficient domestic ore supply. Besides, demand for finance-driven imports was also weak due to sufficient cash flows throughout May.

Supplying countries increased to 19 in May, up 2 from April. Peru, Australia and South Korea were the three largest zinc concentrate suppliers in May, with imports from Australia down by 29,600 mt. Imports transit Nanning Customs, Tianjin Customs and Shijiazhuang Customs were the highest.