Zinc social inventories fell 19,600 mt on week

SHANGHAI, Sep 11 (SMM) – Zinc inventories in China fell sharply this week, primarily propelled by downstream restocking at low prices.

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei decreased 19,600 mt in the week ended September 4 to 175,100 mt, after an increase of 1,200 mt in the previous week. The stocks dropped 12,400 mt from Monday September 7.

In east China’s Shanghai, limited inflow of imported zinc and downstream purchase of domestic zinc at low prices depleted local inventories.

In south China’s Guangdong, smelters increased direct shipments to downstream consumers and downstream users restocking demand improved, leading to a sharp fall in inventories.

Zinc inventories in north China’s Tianjin declined slightly, as mills that have passed environmental protection standards have resumed production with increasing demand and the arrivals of cargoes have increased.

Stocks across the three major trading hubs (Shanghai, Tianjin and Guangdong) fell 17,900 mt this week, after a 1,900 mt increase in the week before.