Zinc social inventories shrank 1,100 mt over weekend

SHANGHAI, May 31 (SMM) – Zinc inventories in China fell over the weekend.

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei decreased 1,100 mt from last Friday May 28 to 154,400 mt as of Monday May 31. The stocks were down 7,100 mt from May 24.

Stocks in Shanghai decreased slightly as the inflow of import zinc was limited, the market digested domestic zinc stocks and downstream procurement slowed down. In south China's Guangdong, market arrivals volume were still low on weekends, the downstream demand also declined, and the market supply and demand were weak. Stocks in Tianjin fell slightly as downstream reduced production with increasing zinc prices, which made the overall demand weak.

Compared to last Friday, social inventories of refined zinc across the three major trading hubs (Shanghai, Tianjin and Guangdong) decreased 800 mt.