China Zinc Concentrate Imports Soared 102.53% YoY in August

SHANGHAI, Sept. 25 (SMM) - China Customs reports China’s zinc concentrate imports were 291,000 mt in August, the second highest this year, up 102.53% YoY but down 3.6% MoM. YTD imports through August were 2.01 million mt, up 61.38% YoY.

SMM attributes the high zinc concentrate imports to three reasons. First, high profit incentivized smelter purchases for imported ore. Profits from imported zinc concentrate averaged RMB 400/mt (zinc content) in July, flat at June’s.

Second, zinc concentrate supply remained tight in South China, leading to raw material shortages at some local zinc smelters during July-August.

Third, high operating rates at smelters left ore demand strong. SMM survey shows the average operating rate at domestic zinc smelters was 79.69% in the first eight months, with the average rate of 79.48% in August.

China imported 32,000 mt of zinc concentrate from goods at bonded warehouses and goods in bonded areas (including pilot areas under Customs supervision) in August.

Imports at Hechi Nanfang Nonferrous Metals Company, Huludao Zinc Industry, Zijin Mining and Baiyin Nonferrous Metals Company added 12,000 mt, 21,000 mt, 1,000 mt and 1,000 mt, respectively, to 39,000 mt, 31,000 mt, 21,000 mt and 7,000 mt. Imports by Shaanxi Dongling Industry & Trade Group grew slightly to 22,000 mt. Jiangxi Copper imported 12,000 mt of zinc concentrate in August, and imported no zinc concentrate in July.

Zhuzhou Smelter Group’s zinc concentrate imports fell 11,000 to 36,000 mt, and Yuguang Zinc Industry’s were down to 9,000 mt. China Nonferrous Metal Industry’s Foreign Engineering and Construction Erenhot Branch reported a 1,000 mt drop to 6,000 mt.

Australia was the largest supplier, with imports from the country down 28,000 mt MoM to 99,000 mt. Imports from Peru fell 2,000 to 69,000 mt. Imports from Spain, South Africa, Ireland and Sweden were 13,000 mt, 11,000 mt, 11,000 mt and 10,000 mt, respectively. Those from Indonesia slid 7,000 mt to 11,000 mt. The number of countries supplying over 10,000 mt of zinc concentrate to China remained at 7.