Zinc social inventories declined 2,900 over weekend

SHANGHAI, Jun 15 (SMM) – Zinc inventories in China extended their declines over the weekend, primarily propelled by a fall in Shanghai as downstream consumers stepped up procurement after prices pulled back.

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei decreased 2,900 mt from last Friday June 12 to 216,600 mt as of Monday June 15. The stocks were down 10,100 from last Monday June 8.

Compared to last Friday, social inventories of refined zinc across the three major trading hubs (Shanghai, Tianjin and Guangdong) fell 2,800 mt, following a decline of 3,700 mt in the week ended June 12.

Stocks in Guangdong edged down over the weekend as continued weakness in demand was offset by reduced arrivals amid greater direct shipments from smelters to downstream consumers. Stocks in Tianjin rose, meanwhile, due to concentrated arrivals, even as demand remained healthy.