2010 July Zn Imports Data Analysis

SHANGHAI, Aug. 30 (SMM) --
Zinc Concentrate:
According to China Customs, imports of zinc concentrate were 195.1 kt during July, down 8.7% MoM. YTD imports were 1.7 million mt, down 15.84% YoY. Zinc smelters were conducting unit maintenance, reducing demand for zinc concentrate, which contributed to the MoM declines in imports of zinc concentrate.  According to SMM data, the average operating rate at 41 domestic zinc smelters during July was only 68%, and was the third month in a row rates have fallen. Some zinc concentrate importers say zinc smelters were unwilling to accept current TC of imported zinc concentrate, so transactions for imported zinc concentrate in spot markets during July and August were sluggish.   

Refined Zinc:
According to China Customs, imports of refined zinc were 33 kt during July, up 51.94% MoM, and with YTD imports at 178 kt, down 66.81% YoY. The largest amount of imported refined zinc during July came from Namibia, accounting for 28% of China's total imports of refined zinc, followed by Kazakhstan, Australia, and South Korea. The SHFE/LME zinc price ratio for July increased and created arbitrage opportunities, which was another factor behind higher imports of refined zinc.

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