SHANGHAI, Jun. 3 (SMM) – Combined zinc inventories in Shanghai, Tianjin and Guangdong grew 1,500 to 322,000 tonnes this past week, after falling for 12 weeks in a row, SMM reports.
Declines in zinc stocks in Shanghai contracted compared with the previous week, while Guangdong and Tianjin witnessed growth in zinc inventories, especially growth in Tianjin was noticeable.
“Rising zinc prices incentivized zinc smelters to sell, and this grew arriving shipments. Downstream demand, however, was weak. Besides, some goods were delivered to North China as premiums on zinc in Tianjin over Shanghai prices were higher than freight charges.”said one SMM zinc analyst.
“Zinc inventories in Shanghai dropped slowly as end-users refrained from buying due to high zinc prices.” the analyst added.
But total inventories in the three regions is expected to fall slightly next week, SMM predicts, as downstream buyers will replenish stocks ahead of the Dragon Boat Festival in China.
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