SHANGHAI, Oct 19 (SMM) – Zinc inventories in China shrank over the weekend, with stocks in Shanghai falling sharply while those in Tianjin extending gains.
SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei fell 3,000 mt from last Friday October 16 to 159,800 mt as of Monday October 19. The stocks were up 800 mt from last Monday October 12.
Strong demand for cheap imported zinc and downstream restocking led to the decline in Shanghai stocks. Inventories in Guangdong fell sharply, while those in Tianjin continued to build up as orders of galvanised pipe weakened.
Compared to last Friday, social inventories of refined zinc across the three major trading hubs (Shanghai, Tianjin and Guangdong) shrank 2,100 mt.