Zinc social inventories fell slower as higher prices sidelined buyers

SHANGHAI, May 22 (SMM) – Zinc inventories in China registered a much smaller decline this week, as greater inflows of foreign cargoes and a surge in prices earlier in the week kept downstream consumers from making purchases.

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei decreased 1,600 mt in the week ended May 22 to 225,700 mt, compared to a decline of 9,700 mt in the previous week. The stocks fell 2,000 mt from Monday May 18.

For the three major trading hubs, stocks in Shanghai and Tianjin rose this week amid weak buying interest, while stocks in Guangdong fell as arrivals reduced after smelters increased their direct shipments to downstream consumers.

Compared to a week earlier, social inventories of refined zinc across Shanghai, Tianjin and Guangdong dipped 1,200 mt, compared to a 7,300 mt decline in the previous week.