Zinc social inventories extend declines as downstream buyers restock after holidays

SHANGHAI, May 10 (SMM) – Social inventories of refined zinc across Shanghai, Guangdong and Tianjin continued to fall this week, as lower prices drove downstream consumers to restock after the Labour Day holiday.

SMM data showed that the inventories lost 6,700 mt from Monday May 6 to stand at 163,200 mt as of Friday May 10, with declines in Guangdong accounting for the most.

Arrivals of imports and bearish sentiment among some buyers, however, limited declines in inventories. Seaborne materials arrived at social warehouses in Shanghai and Tianjin this week, while some downstream consumers held back from purchasing.

Orders at galvanising plants in Tianjin dipped in May, which also slowed declines in social stocks.

Social inventories of refined zinc across the three regions are expected to continue to shrink slower in the short term.