According to the latest customs data, China’s refined zinc imports in November 2023 were 51,700 mt, an increase of 3,200 mt or 6.59% month-on-month, and a year-on-year increase of 344.9%. The cumulative imports from January to November were 357,700 mt, a year-on-year increase of 401.98%. The total refined zinc exports from January to November were 5,700 mt, which means the net import in November 2023 was 51,400 mt.
The top three supplier countries in November were still Australia (17,800 mt), Kazakhstan (12,600 mt), and South Korea (12,100 mt). The concentration ratio of zinc ingot imports in November was relatively high. Zinc ingot imports from Peru increased significantly, with a month-on-month increase of 4,100 mt. Zinc ingot imports from South Korea increased by about 3,100 mt month-on-month. Zinc ingot imports from Kazakhstan decreased by 2,900 mt month-on-month.
The import volume of zinc ingots in November exceeded expectations. In addition to imports of regular brands such as Kazakhstan zinc, the tax-exclusive import window was briefly opened at the beginning of the month, driving imports of zinc ingot from Australia and South Korea. That, combined with shipments from bonded zone inventories, kept the overall imports at highs.
In December, LME zinc inventories were destocked by more than 20,000 mt to about 205,000 mt, buoying LME zinc prices. Premiums in China’s domestic spot markets rose amid low domestic inventories, and spot trades were brisk. This, combined with reverse arbitrage funds, kept SHFE zinc prices strong. The SHFE/LME zinc price ratio advanced, reopening the import window. But in the second half of the month, with the inflow of arbitrage funds, the import window was closed again.
The import volume is expected to remain at a high level of more than 50,000 mt in December.
