Zinc social inventories fell on reduced arrivals

SHANGHAI, Jul 3 (SMM) – Zinc inventories in China resumed decline this week, as arrivals reduced and as demand recovered in some regions on smaller spot premiums.

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei decreased 1,800 mt from last Wednesday June 24 to 216,600 mt as of Friday July 3, after an increase of 900 mt in the previous week.

Notably, the stocks dropped 7,300 mt from Monday June 29, primarily propelled by a sharp decline in Tianjin as smelters scaled back shipments to social warehouses there after active deliveries last week.

Stocks across the three major trading hubs (Shanghai, Tianjin and Guangdong) increased 600 mt from last Wednesday, but fell 5,100 mt from Monday.

In Shanghai, stocks declined as downstream consumers recovered procurement after spot premiums declined while arrivals there were normal.

The change to zinc stocks in Guangdong was moderate this week amid limited arrivals and sluggish demand.