China's refined zinc imports down by 24.79% MOM in May
2014-06-24 09:45:50 [Print]
BEIJING (Asian Metal) 24 Jun 14 - According to statistics released by China Customs, China imported 48,711t of refined zinc in May 2014, up by 24.79% month-on-month and 12.09% year-on-year. Import volumes were 310,973t in the first five months of 2014, up by 27.42% year-on-year.
The chart below shows China’s refined zinc imports from 2011 to 2014.
Zinc futures on the LME and SHFE, especially LME zinc, increased considerably from April to May. As a result, the ratio of zinc futures on the SHFE vs. LME decreased from above 7.5 in early April to around 7.3 in late May. Furthermore, premiums for imported zinc were around USD150/t CIF China before the end of May. The arbitrage opportunities for importers decreased, so refined zinc import volumes declined.
The chart below shows the ratio of zinc futures on the SHFE vs. LME from April to May.
Qingdao port was investigated in late May as some enterprises pledged warehouse receipts repeatedly for financial purpose, causing great controversy on Chinese metal import markets. However, the authorities have not restricted refined zinc import. Furthermore, zinc premiums retreated to around USD120/t CIF China in June. Therefore, Chinese refined zinc import volumes may not decline further.
The table below shows China’s refined zinc import origins and volumes in May 2014.
Unit: Tonne
The chart below shows China’s refined zinc imports from 2011 to 2014.
Zinc futures on the LME and SHFE, especially LME zinc, increased considerably from April to May. As a result, the ratio of zinc futures on the SHFE vs. LME decreased from above 7.5 in early April to around 7.3 in late May. Furthermore, premiums for imported zinc were around USD150/t CIF China before the end of May. The arbitrage opportunities for importers decreased, so refined zinc import volumes declined.
The chart below shows the ratio of zinc futures on the SHFE vs. LME from April to May.
Qingdao port was investigated in late May as some enterprises pledged warehouse receipts repeatedly for financial purpose, causing great controversy on Chinese metal import markets. However, the authorities have not restricted refined zinc import. Furthermore, zinc premiums retreated to around USD120/t CIF China in June. Therefore, Chinese refined zinc import volumes may not decline further.
The table below shows China’s refined zinc import origins and volumes in May 2014.
Unit: Tonne
Zinc Ingot 99.995%min In warehouse Shanghai
Unit:RMB/mt
China refined zinc producers' suspension number statistics by province by month
Unit: pcs
