Zinc social inventories shrank 3,600 mt on week

SHANGHAI, Jul 2 (SMM) – Zinc inventories in China fell this week.

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei decreased 3,600 mt in the week ended July 2 to 112,900 mt. The stocks fell 3,600 mt from Monday June 28.

Stocks in Shanghai continued to decrease as the arrivals of imported zinc were limited and the market mainly digested domestic zinc. In south China's Guangdong, market arrivals improved slightly, downstream demand weakened, and inventories stopped falling and rebounded. In Tianjin, downstream demand declined obviously due to production cut and shutdown for the environmental protection, and traders sent some Tianjin stocks to East China, resulting in an increase in outbound goods on week.

Stocks across the three major trading hubs (Shanghai, Tianjin and Guangdong) fell 5,500 mt this week, after an 11,700 mt decrease last week.