China's H1 2026 Zinc Alloy Trade: Strong Exports, Declining Imports

SMM News, July 23

According to customs statistics, China witnessed a notable divergent pattern of rising exports and falling imports for die-casting zinc alloy in the first half of 2026. Exports registered exceptional strength, while imports continued to shrink.

I. Exports: Year-on-Year Increase, Asia as the Dominant Market

China’s die-casting zinc alloy exports posted robust growth in H1 2026.

Cumulative exports from January to June reached 7,082.34 tonnes, surging 137.68% year-on-year. Monthly data revealed sustained export momentum. June single-month exports stood at 1,994.54 tonnes, up 11.46% month-on-month and a sharp 220.59% year-on-year.

By export destination, market concentration remained high, with Asia accounting for over 70% of total H1 exports. Vietnam ranked as China’s top export destination, taking up 48.94% of shipments. Chinese Taipei followed at 16.72%. Uzbekistan, Bangladesh and other economies also claimed certain market shares.

Part II. Imports: Weak Demand Sustains Import Contraction

In sharp contrast to buoyant exports, the import market for die-casting zinc alloy remained sluggish. China’s cumulative imports of die-casting zinc alloy totalled 15,878.56 tonnes in January–June 2026, plunging 32.93% year-on-year. June imports stood at 2,619.61 tonnes, edging down 0.12% month-on-month and dropping sharply by 43.38% year-on-year. Import origins were also highly concentrated, with South Korea, Australia and Japan ranking the top three, jointly accounting for over 74% of total imports.

Sustained capacity expansion of domestic die-casting zinc alloy has weighed on import volumes. Meanwhile, domestic downstream consumption weakened year-on-year in the first half, lacking solid demand support.

Outlook for Import and Export in the Second Half

Looking ahead to the second half of 2026, the pattern of rising exports and falling imports for die-casting zinc alloy is likely to persist, while impacts from several key variables merit close attention.

Exports: Strength expected to continue, with risks to watch

• Favourable factors: The Shanghai-London zinc price ratio remains low, granting Chinese die-casting zinc alloy distinct price competitiveness in export markets.

• Potential risks: The biggest uncertainties lie in overseas trade policies and shifts in the domestic-overseas price spread.

Imports: Further weakness anticipated; no marked rebound in sight

• Core rationale: The oversupply of domestic alloy capacity cannot be eased in the short term. In addition, demand for imported alloys will stay muted should domestic consumption fail to stage an upside surprise recovery in the second half. The current unfavourable import price spread also weighs on import volumes.