SHANGHAI, Oct. 14 (SMM) - Metal broker Triland Metals lowered its short-term forecast for zinc prices, arguing that any positive effects on zinc prices from Glencore’s output cut will be offset by high stocks and weak demand, SMM reports.
Finished product inventories at Chinese zinc smelters averaged 8.8 days in August, 2.5 days higher than the same period last year, according to SMM data. Zinc inventories in Tianjin, Shanghai and Guangdong grew to some 300,000 tonnes, up over 10,000 tonnes from pre-China’s National Day holiday levels and 62,900 tonnes from the same period last year.
Meanwhile, LME zinc inventories logged 589,900 tonnes as of October 12, up 36% from the bottom of 433,000 tonnes this year. Zinc inventories on the SHFE were 165,800 tonnes by October 9, up 117% from a low of 76,300 tonnes hit early this year.
SHFE zinc prices returned to downward track October 13, following a surge from Glencore’s output cut news.
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