Zinc Ingot Social Inventories Down 3,000 mt over the Weekend

SHANGHAI, Sep 19 (SMM) – SMM data shows that zinc ingot inventories across seven major markets in China totalled 96,300 mt as of Sep 19, down 1,900 mt from last Tuesday (Sep 13) and 3,000 mt from last Friday (Sep 16). In the Shanghai market, rising zinc ingots from Guangdong were still arriving this week, but the downstream buyers in the neighbouring Jiangsu and Zhejiang provinces were reluctant to restock as they had already picked up a large number cargoes previously. Therefore, the inventory in Shanghai was on the rise. Moreover, more zinc ingots from Guangdong are expected to arrive in Shanghai in the following days. The inventory in Guangdong changed little. The transfer of zinc ingots was drawing to an end as support from the price spread almost disappeared. At the same time, the local consumption still remained sluggish. In Tianjin, the pandemic outbreak in Inner Mongolia had blocked the transportation of zinc brands such as Bailing and Hongye. Last Friday, the low prices offered by goods traders stimulated more downstream enterprises to restock, which led to outflows of inventory over the weekend, thus the inventory in Tianjin dropped. Overall, inventories in Shanghai, Guangdong and Tianjin fell 1,700 mt, and inventories across seven major Chinese markets decline 3,000 mt. (Note: The inventory in Guangdong on Sep 16 has been revised to 29,600 mt.)