Zinc social inventories dropped 19,600 mt in the week ahead of Labour Day holiday

SHANGHAI, Apr 30 (SMM) – Zinc inventories in China continued their steep decline this week, as downstream consumers stockpiled ahead of the Labour Day holiday and the imminent restoration of highway toll fees. 

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei stood at 229,600 mt as of Thursday April 30, down 19,600 mt from last Friday April 24 and 10,600 mt from Monday April 27.

Stocks in Guangdong continued to fall sharply this week, as the relocation of cargoes from Guangdong to east and north China that began last week continued on lingering arbitrage opportunities. 

Tianjin only saw a moderate decline in inventories this week, as stable demand was offset by great arrivals. Some of deliveries from Shanghai and Guangdong arrived at social warehouses in Tianjin this week.

Between April 24 and April 30, social inventories of refined zinc across Shanghai, Tianjin and Guangdong fell 14,900 mt, compared with a decline of 22,800 mt in the week ended April 24.