China’s zinc concentrate imports hit a new high in October, but may drop in November

According to the latest customs data, China’s zinc concentrate imports in October 2023 were 434,700 mt, a month-on-month increase of 0.62% and a year-on-year increase of 10.44%. The cumulative imports in January-October 2023 were 3.967 million mt, up 21.3%.

The top three suppliers were Peru (102,500 mt or 23.57% of the total), followed by Australia (100,700 mt or 23.16%) and Iran (39,400 mt or 9.06%)

SMM attributes October’s high import volume to three factors: 1. High production in Peru ensured abundant shipments to China; 2. The SHFE/LME zinc price ratio stayed high and the import window occasionally opened; 3. Chinese zinc smelters’ production topped expectations and hit a new year-to-date high of over 600,000 mt in October, boosting ore demand; 4. TCs of domestic zinc concentrates kept falling amid winter stockpiling by smelters and domestic ore supply was in shortfalls, driving smelters to purchase more imported ore.

However, imports may drop in November, given that TCs of imported concentrates at ports have fallen below $100/dmt, making imported ore less appealing to smelters.