China imported 45,300 mt of refined zinc in June, up 153.06% on the month and 1,796.03% on the year. The imports totalled 98,300 mt in the first half of 2023, up 100.53% YoY.
Total exports of refined zinc in the first half of 2023 stood at 4,600 mt, with a net import of 93,700 mt.
The top three suppliers in June were Australia (13,400 mt), South Korea (12,100 mt) and Kazakhstan (11,600 mt). Zinc imports from Australia and South Korea increased notcieably.
The surge in zinc imports in June is due mainly to the intermittent opening of the import window. In addition, the production resumption of overseas smelters and poor consumption overseas also contributed to the inflow of imported zinc.
Overseas inflation slowed down in July, lowering expectations of interest rate hikes. On the other hand, over 20,000 mt of zinc was delivered to LME warehouses, and the contango of LME cash to the three-month zinc contract expanded, meaning poor overseas consumption. In China, domestic zinc concentrate TCs rose on ample supply. Zinc supply was also adequate thanks to the inflows of imported zinc. Consumption was relatively acceptable despite the off-season. These, combined with market optimism over domestic policies, kept SHFE zinc prices rangebound.
SHFE zinc prices can continue to outperform LME zinc prices.
The import of refined zinc in July will stand at around 40,000 mt. In addition to imported SMC, YP, KZ and Kazakhstan zinc, zinc ingots from India and Japan are also expected to increase.
