China Releases Stats for Zinc Imports and Exports in First 10...

China Releases Stats for Zinc Imports and Exports in First 10 Months China imported 1.72 million tonnes of zinc ore in the first 10 months of this year, skyrocketing 185% year-on-year, while refined zinc exports increased 29.5% on an annual basis to 257,196 tonnes over the same period, according to statistics released by the General Administration of Customs Tuesterday.


The Chinese government is considering cancelling the current 5% value-added tax (VAT) export rebate and imposing a minimum 5% export tax on 0# refined zinc (>=99.995%) in January next year, in order to slow investment growth in zinc smelting projects and curb the country's huge trade surplus, industry insiders previously told Interfax.


The policy will significantly reduce China's zinc exports, which will tighten global supply, and dramatically increase both global zinc prices and zinc concentrate prices. Domestic zinc smelters will have no choice but to accept soaring imported concentrate prices, and will probably be forced to reduce production, according to a senior official at a trading depot affiliated with a zinc smelter.


Zinc futures closed higher on the SHFE today, after a weeklong nosedive. The most traded January contract posted a big gain of 3.98%, or RMB 690 ($93.25), to close at RMB 18,010 ($2,434.05) per tonne, after recovering from the mid-day low of RMB 17,080 ($2,308.36) per tonne.


"Today's gains were in line with the recovery of LME zinc. The price of most trade SHFE contract had increased by the daily trading limit by noon, however, this price is still below the smelting costs of zinc refineries. The growth of zinc prices is still under pressure, due to negative market reports of domestic oversupply and the cancellation of the tax rebate on zinc concentrate," Liu Mingliang, an analyst at Brilliant Futures, said.


SHFE zinc stockpiles reached 26,157 tonnes by today, falling 58 tonnes from last Frid