Zinc social inventories fell 5,700 mt on week

SHANGHAI, Jul 17 (SMM) – Zinc inventories in China continued to fall this week, as logistics was affected by floods in some regions.

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei decreased 5,700 mt in the week ended July 17 to 206,700 mt, after a decline of 4,200 mt mt in the previous week. The stocks dropped 7,500 mt from Monday July 13.

Stocks across the three major trading hubs (Shanghai, Tianjin and Guangdong) fell 4,200 mt this week, compared with a 5,100 mt decline in the week before.

Domestic arrivals affected by floods and limited inflows of imported cargoes contributed to the sharp fall in zinc stocks in east China’s Shanghai this week, even as deliveries from those social warehouses reduced amid cautious procurement by downstream consumers.

Inventories in north China’s Tianjin fell this week as the market was attempting to digest arrivals from the previous week.

Stocks in south China’s Guangdong rose, however, as arrivals increased after the price spread with Shanghai narrowed and smelters reduced direct shipments to end-users.