SHANGHAI, May 29 (SMM) – While the SHFE 1807 zinc contract saw three consecutive days of increase and closed 260 yuan/mt higher at 51,710 yuan/mt on Tuesday May 29 due to declining social inventory, a downward turn may be in sight.
This is due to sluggish downstream demand from galvanising plants despite stable orders across zinc die-casting alloy producers, market participants told SMM.
The decline in inventory was due to downstream purchasing in major markets and limited deliveries from smelters to warehouses as some in north China underwent maintenance.
Overall zinc inventories in warehouses across Shanghai, Tianjin, and Guangdong stood at 120,400 mt as of Monday May 28, down 9,100 mt from the start of last week, according to SMM data.
However, a likely rise in imported zinc concentrate in the medium term would add to the pressure for zinc prices.
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