SHANGHAI, Aug 22 (SMM) – Zinc inventories in Guangdong province fell to a low in two and a half years as of Wednesday August 22. Fewer deliveries from smelters and an improved proclivity to restock across downstream consumers accounted for the decline.
Smelters were less keen to sell as the zinc market dipped, and relatively lower offers in Guangdong further weighed on deliveries. More cargoes were delivered to Tianjin and its nearby regions than to Guangdong during the week.
The Guangdong-Shanghai price spread stood at a discount of 10 yuan/mt today, compared with a premium of 130 yuan/mt for Tianjin-Shanghai price spread, SMM learned.
As of August 22, spot zinc inventories across Guangdong warehouses shrank 1,590 mt from Monday August 20 to 7,805 mt. This marked the lowest level since February 2016.