SHANGHAI, Aug. 28 (SMM) - China’s refined zinc imports grew 73.39% MoM to 34,400 tonnes in July, despite a 17.46% decline on the YoY basis, according to China Customs.
“The sharp growth in zinc imports is due mainly to higher import profit from rising SMM/LME zinc price ratio”, said an SMM zinc analyst. Import profit expanded to 100-150 yuan per tonne, boosting import demand.
“The SMM/LME zinc price ratio improved to 7.7 in July. Besides, import premiums in Johore, Singapore and Shanghai were lowered in mid and late July”, SMM explained. Those for popular brands in Shanghai were cut $5 to $100 per tonne, with some trading made as low as $80 per tonne. Import premiums in Rotterdam and South Korea were firm between $80-105 yuan per tonne and $130-140 yuan per tonne, respectively.
Imports under general trade doubled to 21,300 tonnes. Those made from goods at bonded warehouses and goods in bonded areas (including pilot areas under customs supervision) slid.
Imports from Peru leapt 3,495 to 3,895 tonnes. Those from Kazakhstan, South Korea and Japan increased to 12,700, 9,200 and 4,800 tonnes, respectively.
China’s zinc imports in the first seven month of the year were 231,900 tonnes, down 44.94% YoY. Exports decreased 2.28% YoY to 9,824 tonnes in July, hitting a one-year low.
Zinc imports are expected to climb further in August due to higher profit, SMM predicts. Import profits grew to 500-700 yuan per tonne in August as the zinc price ratio rose to 8.3.
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