SHANGHAI, Aug 17 (SMM) – Social inventories of zinc across Shanghai, Tianjin and Guangdong dropped substantially this week with downstream purchases and limited arrivals from smelters.
The inventory figure came in at 107,000 mt as of Friday August 17, down 16,200 mt, or 13%, from Monday and down 15,900 mt from last Friday, SMM data showed. Inventory drops in Shanghai and Guangdong contributed to the overall decline.
As zinc prices fell, smelters held back from selling while downstream made purchases for restocking. Overall trading was more active than last week. Typhoon Rumbia also delayed some arrivals.
Stocks are likely to halt such decline next week if more imported materials flow into the domestic market.