Inventories of finished products at zinc smelters fell 13,350 mt from a month ago to 30,200 mt in March, including 19,400 mt of zinc ingots and 10,800 mt of zinc alloy, according to SMM survey.
After the CNY, the smelters’ production recovery in March was low amid falling TCs and the dual control of energy consumption in Inner Mongolia, and the refined zinc output only recovered to 496,900 mt. Zinc prices moved up to 21,500 yuan/mt, and smelters were willing to ship goods, so a large amount of inventories was transferred to social warehouses and downstream plants.
In addition, downstream enterprises had a faster pace of recovery in production, and they were active to purchase goods at low prices, which drove the rapid recovery of zinc ingot consumption. Refined zinc output increased slightly by 5,686 mt on the month in April, and the consumption in April is expected to rise slightly, so the finished product inventories at smelters are expected to remain low.
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