Zinc social inventories dropped as demand picked up

SHANGHAI, Mar 27 (SMM) – Zinc inventories in China fell sharply this week, as downstream consumers stepped up procurement following an improvement in orders.

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei decreased 20,700 mt in the week ended March 27 to 307,000 mt, marking a second straight week of decline.

The stocks fell 7,200 mt in the prior week, the first weekly decline since the Lunar New Year holiday.

Compared to Monday March 23, the stocks shrank 17,000 mt.

As demand picked up, Shanghai, Guangdong and Tianjin all saw significant declines in their zinc inventories this week. The biggest decline was seen in Tianjin as large-scale galvanising plants there made large purchases.

Limited arrivals also contributed to lower inventories in Guangdong this week, as smelters increased direct shipments to downstream consumers there or delivered cargoes to east China or Fujian province. 

This week, social inventories of refined zinc across Shanghai, Tianjin and Guangdong fell 15,400 mt, after declining 6,100 mt last week.