Metals Market Update: Surge in China's Refined Zinc Imports Signals Four-Year High

Metals – China's zinc imports surge to four-year high

The latest trade data from China’s Customs shows that refined zinc imports surged to a four-year high of 76.8kt in July, up by around 70% from the previous month. Cumulatively, China’s refined zinc imports have increased by 243% YoY to 175kt over the first seven months of the year. Stronger prices of zinc in the Chinese market compared to LME prices combined with healthy demand for galvanizing material has helped China’s zinc imports to recover strongly this year. Zinc inventories in SHFE warehouses have also dropped to a 7-month low of around 43kt, reflecting supply tightness in the physical market, which should also support stronger imports over the coming months.

The latest data from the International Aluminium Institute shows that global alumina output dropped by 0.2% YoY to 12.2mt in July as supply losses from Oceania, Europe and other regions offset the growth from China. China’s alumina production recovered to around 7.3mt in July, up from around 7.1mt in July last year. Cumulatively, global alumina production has dropped by around 0.8% YoY to 80.7mt over the first seven months of the year. China’s alumina output has increased by 4% YoY to 47.5mt over Jan-Jul, while alumina output from the rest of the world dropped 6.9% YoY to 33.1mt over the same period.