Zinc social inventories extended decline as galvanising demand remained strong

SHANGHAI, Apr 10 (SMM) – Zinc inventories in China fell for a fourth straight week this week, as sustained robustness in galvanising demand continued to deplete stocks in Shanghai and Tianjin.

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei decreased 6,800 mt in the week ended April 10 to 285,800 mt, after a 14,400 mt decline in the previous week. Compared to Tuesday, the stocks shrank 11,600 mt.

Stocks in Shanghai continued to fall sharply this week, as demand boosted by robust orders for galvanised tubes/pipes, structural parts for iron towers and rails far exceeded normal arrivals.

Strong demand and reduced arrivals contributed to the inventory decline in Tianjin this week. Large-scale galvanising plants in the north also received strong orders and operated at high rates. Major zinc smelters there increased their direct deliveries to downstream consumers and held back on sales to some extent.

Social inventories of zinc ingot in Guangdong inched up this week, as orders for zinc alloy die-castings weakened after the coronavirus pandemic began to take its toll on foreign demand.

This week, social inventories of refined zinc across Shanghai, Tianjin and Guangdong fell 7,200 mt, after declining 11,500 mt last week.