Zinc social inventories fell as lower prices spurred purchases

SHANGHAI, Nov 29 (SMM) – Social inventories of refined zinc across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei stood at 135,300 mt as of November 29, down 6,000 mt from Friday November 22 and 5,300 mt from Monday November 25, showed SMM data.

Shanghai contributed to the decline in overall stocks with a decline of over 7,000 mt on the week, as continued weakness in zinc prices kept downstream consumers keen to make purchases. Shipments to downstream consumers who used to source from the Ningbo market in Zhejiang, also helped lower zinc stocks in Shanghai this week.

Guangdong saw strong purchases earlier in the week, but downstream buyers took a wait-and-see stance in the second half of the week.

Zinc social stocks in Tianjin increased this week, boosted by the arrival of Iranian materials and subdued demand with environmental restrictions persisting in northern regions.

Inventories across Shanghai, Guangdong and Tianjin dropped 5,900 mt on the week.

SMM added stocks of refined zinc in Jiangsu, Zhejiang, Shandong and Hebei provinces from November 29.