Bid Farewell to Price Confusion! SMM CIF Import Low-Grade Zinc Oxide Payables Officially Launched [SMM Analysis]

SMM November 28 News:

In recent years, the development of the secondary zinc industry has attracted significant attention, yet the domestic supply of low-grade zinc oxide has become increasingly tight. In contrast, Southeast Asia boasts abundant resources of low-grade zinc oxide raw materials at relatively lower prices, prompting many Chinese enterprises to establish factories in the region, with a considerable number choosing Vietnam. Meanwhile, as uncertainties in international trade have intensified, more and more companies are relocating their factories to Vietnam for integrated procurement, production, and sales, which is gradually becoming a market trend. To keep up with the globalization of international trade and the development of the domestic and overseas low-grade zinc oxide markets, and to reflect the real price fluctuations of low-grade zinc oxide, SMM plans to release the CIF import low-grade zinc oxide payables.

For buyers and sellers in the market, clear and reliable price information is a crucial foundation for conducting business activities. Previously, due to the lack of authoritative price guidance, some enterprises faced difficulties in cost accounting, production planning, and negotiation, making it hard to accurately grasp market dynamics. This not only affected the operational efficiency of the enterprises but also had an impact on the rational allocation and healthy development of industry resources. Based on this, SMM, combining the actual needs of the industry and leveraging its experience in information integration and analysis in the non-ferrous metals sector, officially released the CIF import low-grade zinc oxide payables on November 28. It aims to provide the industry with an objective price reference, help optimize the market order, and support the business activities of buyers and sellers.
For Buyers: Supporting Decision-Making, Reducing Business Uncertainty

In the procurement of low-grade zinc oxide, buyers often encounter issues such as price volatility and quality matching. The release of SMM's CIF import low-grade zinc oxide payables can specifically address these pain points.

Firstly, it aids in cost control and enhances bargaining initiative. Previously, with scattered market prices, buyers lacked a unified standard for negotiations, making cost control challenging. SMM integrates real transaction data from major Vietnamese enterprises, along with raw material trends and supply-demand changes, to strive for reflecting the true market price. Buyers can use this to negotiate, reduce information asymmetry, and keep procurement costs within a reasonable range. Secondly, it optimizes production and inventory decisions. Fluctuations in the price of low-grade zinc oxide affect corporate production plans and inventory strategies. Previously, unclear prices could lead to inventory buildup or production disruptions. SMM updates prices regularly, helping buyers to judge trends: stockpiling when prices are low and adjusting the procurement pace before prices rise, while also aiding in the formulation of precise production budgets.

Thirdly, it reduces cooperation risks. Low-price competition often results in inconsistent product quality. SMM's prices are linked to actual product quality indicators, allowing buyers to select suppliers based on this, reducing production issues and disputes caused by quality mismatches. For Sellers: Standardizing Competition, Enhancing Business Stability

Currently, sellers face significant pressure from low-price competition, unstable profits, and difficulty in building customer trust. The release of SMM's CIF import low-grade zinc oxide payables can create a more orderly business environment for sellers.

Firstly, it guides standardized competition. SMM provides a unified benchmark, helping sellers move away from the "lowest price" model towards improving quality, optimizing processes, and enhancing services. This allows compliant enterprises to gain fair competition opportunities, promoting healthy industry competition. Secondly, it stabilizes profit expectations. Price fluctuations make it difficult for sellers to set prices. SMM's prices, based on market transactions and trend analysis, offer stability and reference. Sellers can set reasonable selling prices in line with their own costs, reducing pricing concerns.

Release Time: Before 18:00 on the last working day of each month.

SMM's release of the CIF import low-grade zinc oxide payables is aimed at supporting industry standards through professional information services. This price serves more as an "auxiliary reference" for buyers and sellers, helping to reduce information gaps and lower risks. In the future, SMM will continue to monitor the market, optimize the price mechanism, listen to enterprise feedback, and strive to better meet the needs of the industry, working together with all parties to promote the orderly and sustainable development of the zinc oxide market!

For any inquiries regarding prices, please contact Zinc Analyst Hua Lin at 021-20707844; hualin@smm.cn

(The above information is based on market data collection and comprehensive evaluation by the SMM research team. The information provided is for reference only. This article does not constitute direct advice for investment and research decisions. Clients should make prudent decisions and not rely solely on this information, as any decisions made by clients are unrelated to SMM.)