Welcome to contact us for agent business cooperation.
Yiwu agent,Yiwu buying agent,Yiwu purchasing agent,Yiwu export agent,Yiwu sourcing agent,Yiwu Procurement Agent,Yiwu translater,Yiwu export agent,Yiwu inspection agent,Yiwu Sourcing,China YiWu agent

Business News

Imports of zinc likely to decline

Hits:  UpdateTime:2010-08-26 10:07:40  【Printing】  【Close

Singapore - Zinc imports by China, the world's largest consumer and producer, may drop from a 10-month high in August as higher overseas prices discourage purchases and as government measures to cool the property market curb demand.

Imports of refined zinc were 32,972 metric tons last month, Customs data showed on Monday, the highest level since September 2009.

They may drop to the "usual" 10,000 tons to 20,000 tons as demand weakens and domestic smelters resume output, according to Cofco Futures Co. July's inbound shipments of the metal used to galvanize steel were 52 percent more than in June, according to Bloomberg calculations.

Lin Yuhui, deputy general manager at Jinhui Futures Co, said from Shenzhen. "It's doubtful we'll see such high imports in August as the window was mostly shut in July." Arbitrage traders try to profit by buying metal in London and selling it in Shanghai, exploiting the gap in prices.

Prices in Shanghai, which include 17 percent value-added tax and import fees, were more than 1,000 yuan/ton higher than in London at the beginning of June, according to data compiled by Bloomberg.

Zinc, the worst performer on the London Metal Exchange this year, rallied 13 percent in July, while Shanghai prices gained 12 percent in the same month. Domestic output fell 6.6 percent in June from a month earlier, and declined 4.1 percent in July, as smelters idled capacity following the slump in prices.

Prices slump

Three-month delivery zinc was little changed at $2,046.50 a ton in afternoon trade in Singapore. The contract has lost 20 percent this year. Zinc for December delivery in Shanghai traded at 17,025 yuan ($2,503) a ton at the midday break, down 20 percent this year.

"The increase in imports was due, in part, to lower domestic production," said Jia Zheng, a trader at Soochow Futures Co. "Imports will drop in August without arbitrage opportunities and as smelters re-open after their summer maintenance."

Zinc smelters in China may boost output next month as they complete summer maintenance programs, lifting utilization rates from the lowest level since March 2009, Shanghai Metals Market analyst Zhu Yiman said on Aug 18.

Stockpiles in warehouses monitored by the Shanghai exchange were 295,454 tons at the start of June, the highest level since futures started trading in 2007. Inventories were 20 percent lower at 235,972 tons last week as output shrank.

A slowdown in China's steel industry will hurt zinc demand and reduce imports, said GF Futures Co analyst Liu Biyuan.

Steel prices in China have dropped as much as 17 percent since April as the government took steps to curb property speculation, cutting demand for commodities used in construction.



  Greetings to you! If you feel Yiwu procurement is not convenient, don't worry, let us to deal with for you. As a professional purchase / export agent in Yiwu city, we offer the agent service of buying,sourcing,quality control inspection,merchandiser, shipping,export,translation,markets & factories guiding,booking hotel etc. We just charge  2% of total container amount as our commission. If you only request us to be your translater and guider in short time, we only charge USD25 / day for the guiding&translation service on visiting all the Yiwu markets. We would like to be your honest, economic, reliable and long-term partner in China.
  Welcome to contact us.
Kind Regards
Tel: +86-13750925921
Calling, SMS and Email are available.
Our Office, Certificates, warehouse

  • Yiwu BeiGui agent Copyright 2012-2015
  • Add:Room 201, Building 22#, ChunHan 3rd area, BeiYuan, YiWu, China. PC:322000
  • E-mail:agent.yiwu.china@gmail.com Skype:nikowyx QQ/ WeChat:410636966

Powered by MetInfo 5.2.10 ©2008-2014 www.MetInfo.cn