SHANGHAI, Mar. 24 (SMM) - Spot zinc stocks fell for a third consecutive week in China on bargain hunting by downstream users and trade houses alike, according to a survey by Shanghai Metals Market.
Stockpiles of the galvanizing metal on a spot basis in China’s three major trading regions – Shanghai, Tianjin and Guangdong – declined by 19,800 tonnes last week to 381,500 tonnes, the survey showed.
Zinc prices on Shanghai Futures Exchange (SHFE) tumbled to below 14,700 yuan ($2,387) per tonne last week, the lowest level since July 2013, while London Metal Exchange (LME) prices dipped to a seven-week low of $1,950 per tonne.
Despite recent improvements in the SHFE/LME price ratio, trade houses expressed limited interest in importing zinc and some were reportedly buying domestically-produced zinc to fulfill long-term orders instead.