SHANGHAI, Apr 24 (SMM) – Zinc inventories in China fell steeply this week as large amounts of shipments departing from Guangdong remained en route.
SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei decreased 25,700 mt in the week ended April 24 to 246,500 mt, marking the sixth straight week of decline. Compared to Monday, the stocks shrank 19,100 mt.
Guangdong accounted for most of the overall inventory decline this week, as widened spot price spread between Guangdong and east China zinc and lower freight charges driven by plunged oil prices triggered the shipments from Guangdong to east and north China. Next week, the delivery is expected to arrive at downstream companies or warehouses in east and north China.
In the week ended April 24, social inventories of refined zinc across Shanghai, Tianjin and Guangdong fell 22,800 mt, after declining 13,200 mt in the previous week.