Limited arrivals, downstream restocking lower zinc social inventories

Sulfur physical delivery prices kept the downward trend this week. Market sources say that on June 15, the sulfur transaction price had fallen to yuan 9,500/mt, and on June 16, it rebounded slightly to yuan 9,600/mt, but compared to the peak transaction price of yuan 11,985/mt last Thursday (June 11), the gap has already exceeded yuan 2,000/mt. Today (June 17),SMM EXW Shandong Sulfur were further reduced, to a range of yuan 9,507–10,000/mt, with the average price reported at yuan 9,753.5/mt, down yuan 600/mt from yesterday, and the decline widened markedly. Looking back at recent movements, since June 5, the sulfur price started to rally rapidly from yuan 8,075/mt and on June 8 surged to yuan 9,625/mt, thereafter climbing to last week’s peak before pulling back quickly, causing market sentiment to take a sharp downturn. Currently, downstream buying sentiment is weak. Faced with the rapid price decline, buyers are showing strong wait-and-see sentiment, only maintaining purchases for rigid demand while pushing for lower prices. Support from major downstream demand—phosphate fertilisers and sulphuric acid—is insufficient, and the sulfur market still faces further downward pressure in the near term.

According to an SMM survey, a zinc smelter in northern China started routine maintenance today, planning a 40-day maintenance period, with an estimated impact of approximately 3,000 mt.

[SMM Zinc Morning Meeting Minutes: LME Zinc Inventory Rises Notably, LME Zinc Center Moves Lower] Overnight, LME zinc opened at $3,579.5/mt, briefly rose to a high of $3,599/mt in early trading, then retreated from highs and fell all the way, dipping to $3,539/mt during the session. Then LME zinc rebounded slightly from the low to near the daily moving average and moved in a narrow range, finally closing down at $3,561.5/mt...