India: Imports of semi-finished zinc rise around 10% m-o-m in Jul'24

In India, the semi-finished zinc ingot market witnessed notable growth in July 2024, driven by supply constraints and robust industrial demand. This growth occurred across major Asian economies, with increased imports reflecting the country's reduced procurement of zinc scrap.

Semi-finished zinc ingot imports

In July 2024, semi-finished zinc ingot imports reaching 12,188 tonnes (t), marking an increase of 9% as compared to 11,208 t in last month. Meanwhile, imports declined by 37% as compared to 19,333 t last year.

Country-wise shipments to India

In July 2024, South Korea emerged as the top exporter at 6,290 t, down 19% m-o-m from 7,787 t in June 2024. However, in Japan (3,877 t), imports surged by 101% m-o-m from 1,933 t in June 2024. Australia exported 496 t, an increase of 5% from 471 t in previous month, while other countries collectively shipped 1,525 t also fell by 50% in comparison with June 2024.

The zinc ingot market's strong performance reflects Japan's overall economic trends. In July, exports increased by 8.5% year-on-year, marking the eighth consecutive month of growth, driven mainly by the semiconductor and automotive industries, which are major consumers of zinc.

Zinc scrap imports

In July 2024, zinc scrap imports have decreased by 10% to 5,796 t in comparison with 6,465 t in June 2024 . However, imports significantly increased by 18% as compared to 4911 t in July 2023.

The average LME zinc price has increased by 1% in July 2024 to settle at $2,898/t in comparison with $2,862/t in June 2024. Additionally, metal stocks at LME-registered warehouses showed positive trends, rising by 10% in July 2024 to 225,612 t, up from 204,520 t in the previous month.

Grade-wise imports

The top grade imported was saves, which decreased by 13% in July 2024 to 4,387 t in comparison with 5,045 t in previous month, followed by score, down by 5% m-o-m compared to 906 t in June 2024, followed by scroll at 214 t in July 2024 in comparison with 51 t in June 2024.

Country-wise shipments

The top exporter for scrap in July 2024 was the US at 587 t, followed by Saudi Arabia at 495 t, Germany at 315 t and others at 4,399 t as per provisional data maintained with BigMint.

Market outlook

The demand for zinc in India is projected to double over the next five to 10 years, supported by substantial investments in the infrastructure sector, including steel, according to the International Zinc Association. This anticipated growth is closely tied to the expansion of the steel market, as zinc is primarily used for galvanizing steel to prevent corrosion.