May Zinc Oxide Import and Export Breakdown: Exports Down MoM, Sustained YoY Growth

SMM News, June 22:

According to the latest customs data, China’s zinc oxide imports reached 342.78 tonnes in May, rising 53.16% month-on-month. Cumulative imports from January to May stood at 2,592.66 tonnes, up 1.7% year-on-year. China exported 1,693.81 tonnes of zinc oxide in May, a month-on-month drop of 18.71%. Total exports for the first five months hit 8,831.86 tonnes, surging 51.82% year-on-year. Breakdown of May import and export volumes is as follows:

Imports (Total: 342.782 tonnes)

Import sources were heavily concentrated in Asia, which accounted for over 85% of total inbound shipments:

Imports from Thailand: 120.51 tonnes (35.15% share), down 39.70 tonnes month-on-month

Imports from Chinese Taiwan: 77.40 tonnes (22.58% share), up 11.40 tonnes month-on-month

Imports from Japan: 36.48 tonnes (10.64% share), down 35.44 tonnes month-on-month

In addition, inbound volumes from Malaysia, Canada and South Korea fell markedly by 89.54 tonnes, 132.21 tonnes and 76.40 tonnes month-on-month respectively. By contrast, imports from Austria and Belgium rose by 11.680 tonnes and 7.500 tonnes month-on-month.

Exports (Total: 1,693.81 tonnes)

Exports remained highly concentrated in Asia, taking up more than 75% of total outbound volumes:

Exports to Vietnam: 370.45 tonnes (21.87% share), down 36.25 tonnes month-on-month

Exports to the Philippines: 149.10 tonnes (8.8% share), down 46.90 tonnes month-on-month

Exports to Indonesia: 130.50 tonnes (7.7% share), down 63.75 tonnes month-on-month

Elsewhere, shipments to Saudi Arabia totalled 54 tonnes (3.19% share), falling 324.50 tonnes month-on-month. Deliveries to Nigeria and Thailand also slid by 194.25 tonnes and 143.78 tonnes month-on-month, representing sharp declines in zinc oxide purchases from China by these three markets. Meanwhile, outbound volumes to Chinese Taiwan and Indonesia climbed by 86.65 tonnes and 63.75 tonnes month-on-month respectively.

(Details of zinc oxide imports and exports for April and May are attached at the end of the article.)

Market Outlook

As a net exporter of zinc oxide, China is expected to sustain robust export volumes going forward. For one thing, the persistent low Shanghai-London zinc price ratio in June has lent price competitiveness to China’s zinc oxide exports. For another, continuous relocation of domestic tire manufacturing capacity overseas has driven parallel exports of supporting zinc oxide, which will underpin export performance.

On the import front, inbound demand will face notable headwinds amid overcapacity of domestic zinc oxide production, elevated overseas zinc prices and sluggish domestic end-user demand.