According to the latest customs data, zinc concentrate imports in November 2023 were 314,000 mt (physical content), a month-on-month decrease of 27.67% and a year-on-year decrease of 30.01%. Total zinc concentrate imports in 2023 were 4.2813 million mt (physical content), a year-on-year increase of 15.1%.
In November 2023, the top three supplier countries were: Australia with 100,400 mt in physical content, accounting for 31.96%; Peru with 71,900 mt in physical content, accounting for 22.89%; Kazakhstan with 24,700 mt in physical content, accounting for 7.86%; on a month-on-month basis, imports from Kazakhstan grew slightly, while the import volume from other countries decreased to varying degrees.
SMM attributes the month-on-month decline in zinc concentrate imports to three reasons:
1. At the end of the year, most of the long-term orders had been completed, and the overall shipments arrivals were low;
2. The SHFE/LME zinc price ratio fell, closing the import window. There were also scarce imports under small orders;
3. While the overall ore demand was strong due to stockpiling for winter, the output of domestic smelters in November dropped to 579,000 mt, weakening the demand for zinc concentrate. Meanwhile, TCs of imported zinc concentrate were around $90/dmt, meaning lower economics of imported ore. Domestic smelters snapped up domestic ore.
In December, although the import window was still closed, the SHFE/LME zinc price ratio recovered. Meanwhile, smelters are actively stocking up on ore in the first quarter. Hence a small increase in import volumes.
