Zinc social inventories resumed decline on wider import losses, dip buying

SHANGHAI, Jun 12 (SMM) – Zinc inventories in China declined this week, as demand improved after prices pulled back and as inflows of imports reduced on wider import losses.

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei decreased 4,200 mt in the week ended June 12 to 219,500 mt, after an increase of 8,100 mt in the previous week. The stocks dropped 7,200 mt from Monday June 8.

Stocks across the three major trading hubs (Shanghai, Tianjin and Guangdong) fell 3,700 mt this week, compared to an 8,000 rise in the previous week.

Reduced arrivals of imports and dip purchases lowered stocks in Shanghai this week, while cargo movement to east and north China contributed to the inventory decline in Guangdong.

In Tianjin, stocks were little changed this week as healthy demand was offset by arrivals of Guangdong resources.