Korea's zinc export as well as import tonnage dipped by large over the first quarter especially on many negative factors like the global economic unrest, LME value in higher volatility, troubled production and forced shipment toward Korean market. The result was down 15.6 percent the previous year to 109,775 metric tons.
In February, Korea’s zinc trade was impacted by Korea Zinc’s production problem which resulted from a fire at its Onsan-based refinery plant ensuing about 10 days suspension in particular, and other factors sustained like Korean need rise due to the import embargo from Iran, Korean market-driven sales strategies and changes in the Indian market, etc. In the first quarter, Korea’s zinc export was the lowest since the first quarter 2014 of 97,922 metric tons, when the Korean producers scaled down exports in a bid to cope with the instable supply occurred the previous year. Korea's zinc export over the first quarter this year was downwardly commanded toward India to which shipment fell 36.3 percent totaling 15,091 metric tons, and to Thailand down 41.1 percent each a year ago.
For instance, over the first quarter the last year, Korea’s zinc export shipped to India expanded by 20,752 metric tons, but this year had the reverse because of India’s increased production of zinc ore concentrate, and the resultant production addition. The zinc export headed Vietnam, Malaysia and Saudi Arabia turned out to have largely slipped the previous year. In addition, zinc import dipped 25.2 percent in the first quarter this year to 12,397 metric tons on some of Korean consumers claimed higher needs for Korean products and due to the reduced awarding for zinc tendered by the Korea Public Purchase.
Import from India was down 24.1 percent over the first quarter this year, but it is known that the yearly import estimate will not be largely different from the tonnage registered the last year. Considering that the export and import of zinc traded with India were smaller the previous year, it is assumed that stampede became signified among the Korean zinc producers launched India market.
In the second quarter, however, Korea’s zinc export is expected to maintain similar to or add the previous year considering the activating production coupled with the rise in technology commission. The unrest remained on the market on the LME stock fall and price swings early this year, but the possibility of supply glut is unlikely albeit the world zinc production will be expanded this year, the industry people said. The 2019 zinc trade will be totally dependent upon the strategies being targeted by the Korean producers at both Korean market and overseas in conjunction with the markets in India and China, they added.
Source: Steel&Metal News |
