How is zinc oxide export Jan-Feb affected by the Chinese New Year holiday? [SMM analysis]

SHANGHAI, Mar 25 (SMM) -

Export:

According to the latest customs data, the export volume of zinc oxide in January 2024 was 1,003.71 tons, and the export volume in February was 667.63 tons. The cumulative export volume of zinc oxide from January to February 2024 was 1,671.34 tons, a year-on-year decrease of 27.74 percentage points.

From January to February 2024, Vietnam imported a total of 536.82 tons of Chinese zinc oxide, accounting for 32.12% of China’s total zinc oxide exports from January to February, ranking first; Pakistan imported 176.52 tons of Chinese zinc oxide, accounting for 10.56% of China’s total zinc oxide exports in December, ranking second; Japan imported 173.31 tons of Chinese zinc oxide, accounting for 10.37%, ranking third; Thailand and Kenya followed closely.

Zinc oxide companies have gradually moved to Southeast Asia along with rubber tire companies. Vietnam, which is the largest buyer of China’s exports, also had statutory holidays. Zinc oxide exports in January and February showed a larger decrease.

Import:

According to customs data, the zinc oxide import volume in January 2024 was 513.29 tons, and the zinc oxide import volume in February was 701.38 tons; the cumulative zinc oxide import volume from January to February 2024 was 1,214.67 tons, a year on year increase of 47.77%. Zinc oxide imports increased month-on-month from January to February, mainly because domestic demand still existed. Rubber tire exports were higher year-on-year. However, domestic zinc oxide companies in January-February were affected by factors such as the Chinese New Year holiday and corporate maintenance, and their production started to decline. The price of imported zinc oxide was lower than that of domestic zinc oxide from the second half of 2023. It is expected that domestic zinc oxide companies will basically resume production in March, and zinc oxide imports may decline.