Home / Metal News / Zinc / [SMM data] the impact of maintaining a high level of imported zinc concentrate in March may be reflected after April.
[SMM data] the impact of maintaining a high level of imported zinc concentrate in March may be reflected after April.
Apr 27,2020 16:44CST
translation
Source:SMM
SMM4, March 27: according to the latest customs data, the total import of zinc concentrate in March 2020 was 307000 tons (tons in kind), an increase of 104700 tons (tons in kind) from March 2019, an increase of 51.78 percent.
The content below was translated by Tencent automatically for reference.

SMM4, 27 March:

According to the latest customs data, zinc concentrates imported in March 2020 totaled 307000 tons (tons in kind), an increase of 104700 tons (tons in kind) from March 2019, an increase of 51.78 percent.

Comparative Diagram of Zinc concentrate imports from 2019 to 2020

 

From a country-by-country point of view, Australia imported 99300 tons of physical tons, accounting for 32.4% of the total import of zinc concentrate in March, ranking first, but there was a significant decreasing trend compared with January-February. Spain imported 41900 tons of physical tons, accounting for 13.7% of the total import of zinc concentrate in March. The import volume exceeded the sum of January and February, with an obvious increasing trend, surpassing Peru in the second place. Peru imported 41800 tons of physical tons, accounting for 13.6% of the total imports of zinc concentrate in March, which was significantly lower than that from January to February, ranking third.

According to SMM, imports of zinc concentrate rose sharply in March from a year earlier, but the reasons for the month-on-month comparison were as follows:

First, the domestic mining and metallurgical negotiations continue, although the processing fees have been reduced, but it still can not prevent many mines from delaying the start-up time, or reducing production, controlling sales, etc., and reducing losses during the fall in zinc prices. As a result, most of the domestic smelters are faced with the problem of shortage of raw materials. The obvious increase in the demand of smelters for imported ores is the main reason for the increase in the import of zinc concentrate.

Second, the import window of zinc concentrate in March opens, and the average daily profit during the month is about 250 yuan / ton. The import is profitable, and the processing fee of imported zinc concentrate in March is about 250-280 US dollars / dry ton, which is also higher than that in China. Smelter's willingness to use imported zinc concentrate has also increased significantly.

In addition, imports of zinc concentrates from countries such as Spain, South Africa, Kazakhstan and Saudi Arabia increased significantly, compared with the combined figures from January to February, making up for some of the reductions in Australia and Peru. Due to the impact of the epidemic in Peru, the output of some mines closed in the early stage has been affected to a certain extent, resulting in a significant reduction in the amount of zinc concentrate imported into the country.

In April, domestic mining enterprises basically returned to normal production, but due to the low zinc price eroded mine profits, domestic mines are still deliberately controlling sales. Domestic demand for imported zinc concentrate is expected to increase further in April. However, due to the epidemic in Peru, Australia and Spain and other countries affected by the epidemic in some port operations, shipments or month-on-month decline.

Overall, SMM expects imports of zinc concentrate in April to be around 250000 physical tons.

 

"Click to sign up for SMM" 2020 (15th) lead and Zinc Summit

Scan the QR code to sign up for the lead and zinc summit and fill in the personal information at the end of the page, and the conference staff will contact you later!

Zinc
price
operating rate

For queries, please contact Frank LIU at liuxiaolei@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news