SHANGHAI, Jul 19 (SMM) – Zinc social inventories across Shanghai, Tianjin and Guangdong continued to shrink this week, as slower shipments from domestic smelters and few inflows of seaborne materials limited arrivals at social warehouses.
Consumption, meanwhile, weakened in a low season.
Smelters in north China conducted summer maintenance in July-August, which capped gains in overall output. This, together with a depletion in in-plant stocks from the July delivery of futures contracts, slowed shipments from smelters to social warehouses, as smelters had to ensure direct shipments to downstream consumers.
Several large smelters will recover from maintenance in the coming weeks, which might generate a rebound in social inventories, but the growth will be limited in the short term.