SHANGHAI, May 27 (SMM) – Combined zinc inventories in Shanghai, Tianjin and Guangdong fell 22,900 to 320,400 tonnes this past week, SMM reports.
Declines were more significant compared with the previous week. SMM understands zinc smelters were reluctant to sell as zinc prices fell, while downstream purchases improved. In the meantime, premiums on zinc in Tianjin over Shanghai prices expanded nearly 100 yuan to 130-270 yuan per tonne. So some zinc smelters stepped up supplies to Tianjin whilst reducing those to Shanghai.
Further fall in total inventories in the three regions is still expected next week, SMM predicts. But the decline should be less significant as month-end cash tightness will dampen downstream buying interest.
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