Zinc social inventories decline 700 mt on week

SHANGHAI, Aug 23 (SMM) – Zinc social inventories across Shanghai, Tianjin and Guangdong continued to fall this week as lower futures prices bolstered downstream procurement in Guangdong and as limited cargoes arrived in Tianjin. 

SMM data showed that stocks across the three areas decreased by 700 mt from Friday August 16 and by 2,700 mt from Monday August 19 to stand at 140,300 mt as of Friday August 23. 

Lower stocks in Guangdong and Tianjin accounted for the declines. Die-casting plants in Guangdong reported improved orders this week, indicating revived downstream demand on lower prices. Maintenance across smelters in north China weighed on arrivals in Tianjin. 

SMM expects inventories in Tianjin to pick up next week as maintenance in the north draws to a close. Stocks in Shanghai may rise next Monday due to arrivals from Guangdong.