Zinc social inventories fell 2,700 mt on week

SHANGHAI, Aug 7 (SMM) – Zinc inventories in China continued to fall this week, primarily propelled by slow inflows in Shanghai and low prices in Guangdong.

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei decreased 3,100 mt in the week ended August 7 to 192,100 mt, compared to a decline of 3,700 mt in the previous week. The stocks dipped 9,800 mt from Monday August 3.

Stocks across the three major trading hubs (Shanghai, Tianjin and Guangdong) fell 3,400 mt this week, after a 3,600 mt decline in the week before.

Inventories in south China’s Guangdong fell this week as smelters reduced shipments to Guangdong and some zinc ingots were transferred to Tianjin.

Arrivals of domestic products at east China’s Shanghai decreased this week due to slow inflows and transfer of some cargoes to Tianjin, while stocks in south China’s Guangdong remained stable as inventory transfer source began to arrive, and the market demand was relatively stable.