Bid Farewell to Price Confusion! SMM CIF Import secondary 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; however, the domestic supply of secondary zinc oxide has become increasingly tight. In contrast, Southeast Asia boasts abundant secondary zinc oxide raw material resources at relatively low prices, which has prompted many Chinese enterprises to establish production facilities in the region, with a considerable number choosing Vietnam. At the same time, amid growing uncertainties in international trade, more companies are relocating their plants to Vietnam to achieve integrated procurement, production, and sales, gradually forming a market trend. To keep pace with the globalization of international trade and the market development of secondary zinc oxide both domestically and overseas, and to reflect the actual price fluctuations of secondary zinc oxide internationally, SMM plans to launch the CIF import secondary zinc oxide payables.

For buyers and sellers in the market, clear and reliable price information serves as a crucial foundation for conducting business operations. Previously, the lack of authoritative price guidance posed challenges for some enterprises in cost accounting, production planning, and negotiation, making it difficult to accurately gauge market dynamics. This not only affected operational efficiency but also had implications for the rational allocation of resources and the healthy development of the industry. In response, leveraging its expertise in information integration and analysis within the nonferrous metals sector, SMM officially launched the CIF import secondary zinc oxide payables on November 28. This initiative aims to provide an objective price reference for the industry, support the gradual optimization of market order, and assist buyers and sellers in their business activities.

For Buyers: Supporting Decision-Making and Reducing Operational Uncertainty
In secondary zinc oxide procurement, buyers often face issues such as price volatility and quality matching. The release of SMM’s CIF import secondary zinc oxide payables is designed to address these pain points.
First, it aids in cost control and enhances bargaining initiative. In the past, fragmented market prices made it difficult for buyers to negotiate based on a unified standard, complicating cost management. SMM’s price integrates actual transaction data from major Vietnamese enterprises, combined with raw material market conditions and supply-demand changes, striving to reflect true market values. Buyers can use this as a basis for negotiation, reducing information asymmetry and keeping procurement costs within a reasonable range. Second, it optimizes production and inventory decisions. Fluctuations in secondary zinc oxide prices impact production planning and inventory strategies; previously, unclear prices could lead to inventory buildup or production disruptions. With regular updates, SMM’s price helps buyers identify trends: they can stockpile appropriately during low-price periods and adjust procurement pace ahead of price increases, while also aiding in the formulation of precise production budgets. Third, reducing cooperation risks. Low-price competition can easily lead to inconsistent product quality. The SMM price is linked to actual product quality indicators, allowing buyers to screen suppliers accordingly, thereby minimizing production issues and disputes arising from quality discrepancies. For sellers: standardizing competition and enhancing operational stability.
Currently, sellers face significant pressure from low-price competition, unstable profits, and difficulties in building customer trust. The release of the SMM CIF import secondary zinc oxide payables can create a more orderly operating environment for sellers.
First, it guides standardized competition. The SMM price provides a unified benchmark, helping sellers move away from the "race-to-the-bottom" pricing model and shift toward improving quality, optimizing processes, and enhancing services. This allows compliant enterprises to gain fair competition opportunities and promotes healthy industry competition. Second, it stabilizes profit expectations. Price fluctuations make it challenging for sellers to set prices. The SMM price, based on market transactions and trend analysis, offers stability and reference value. Sellers can set reasonable selling prices by considering their own costs, reducing pricing difficulties.
Release time: Before 18:00 on the last working day of each month.
The release of the SMM CIF import secondary zinc oxide payables aims to support industry standardization through professional information services. This price serves more as an "auxiliary reference" for both buyers and sellers, helping to reduce information asymmetry and mitigate risks. In the future, SMM will continue to monitor the market, optimize the pricing mechanism, and listen to enterprise feedback, striving to better align its services with industry needs and jointly promote the orderly and sustainable development of the zinc oxide market with all stakeholders!
For any inquiries regarding the price, please contact Zinc Analyst Hua Lin at 021-20707844 or hualin@smm.cn.