SHANGHAI, Jul 12 (SMM) – Stocks of refined zinc across Shanghai-bonded warehouses fell for a seventh straight week, but at a slower pace, this week, as a recovery in import profits was insufficient to open the arbitrage window.
SMM data showed that stocks decreased by 200 mt from a week ago to stand at 90,500 mt as of Friday July 12, after a dip of 400 mt in the week ended July 5.
Import losses narrowed by 300-500 yuan/mt following the collapse of the backwardation structure on London zinc, but the import arbitrage window remained closed.
A lack of arbitrage opportunities and a substantial increase in domestic supply held traders back from purchasing seaborne cargoes, keeping foreign trades light.
