Chinese Zinc Concentrate Imports Rose Again in Nov

SHANGHAI, Dec 23 (SMM) - According to the General Administration of China, China imported 449,200 mt of zinc concentrate in November (physical content, the same below), up 55,600 mt or 14.13% MoM, and up 21.9% YoY. The imports totalled 3.72 million mt from January to November, a year-on-year growth of 9.15%.

Imports from Australia were 104,600 mt in November, accounting for 23.28% of the total imports, ranking the first. Imports from Peru were 86,300 mt, accounting for 19.21% of the total imports, ranking the second. Imports from South Africa were 48,400 mt, accounting for 10.78% of the total imports, ranking the third.

SMM attributed the month-on-month import growth to the following causes.

1. Glencore’s zinc ingot production in Kazakhstan was inconsistent, and some zinc concentrate that originally was supplied to its smelters flowed into China. The imports flowing to provinces like Yunnan rose palpably.

2. Imported zinc concentrate was still arriving in a concentrated manner as Chinese zinc smelters placed orders intensively earlier. 

3. TC for imported zinc concentrate was still high, making it popular among domestic smelters. 

Entering December, with overseas smelters’ production restricted to varying degrees, the zinc concentrate keeps flowing into China. In China, boosted by lucrative profits, the operating rates of smelters were high in the second half of the year, and some even overproduced, resulting in stronger demand for zinc concentrate than last year. Coupled with high TC for imported zinc concentrate, the imports were relatively high both year-on-year and month-on-month. Chinese zinc concentrate imports are likely to stay high in December.