China Zinc Concentrate Imports Rose MoM in Aug with Those from Australia Growing the Most

SHANGHAI, Sep 20 (SMM) - According to customs data, China imported 376,400 mt of zinc concentrate in August (physical content, the same below), up 83,900 mt or 28.65% MoM, and up 23.8% YoY. The imports totalled 2.47 million mt from January to August, a year-on-year growth of 0.77%.

In terms of imports by country, Australia (94,600 mt, 25.14%), Peru (57,300 mt, 15.23%) and South Africa (52,900 mt, 14.05%) were the top three suppliers to China in August. Among them, the imports from Australia posted significant MoM growth.

SMM attributed the month-on-month import growth to two factors.

1. Rising SHFE/LME price ratio allowed higher profit margins of smelters concerning imported zinc concentrate, and smelters were with relatively strong purchasing interest. 

2. Imported zinc concentrate purchased earlier still arrived in China in a centralised manner, hence the overall arrivals were at a high level. 

Entering September, domestic mines have maintained stable production amid the relatively sufficient supply of domestic zinc concentrate. The expectations of rising zinc concentrate imports have ramped up amid lucrative import profits based on the SHFE/LME price ratio. As such, the smelters are considering heightening the TCs further in light of booming raw material inventory, and the TCs are likely to rise to $190-230/dmt in September. China zinc concentrate imports are likely extend the mild gains in September.