Zinc social inventories shrank 10,100 mt on week

SHANGHAI, May 21 (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 10,100 mt in the week ended May 21 to 166,200 mt. The stocks fell 5,000 mt from Monday May 17.

Stocks in Shanghai continued to decrease as the inflow of imported zinc slowed down, and the market digested domestic zinc stocks. In south China's Guangdong, power curtailment and limited production in Yunnan smelters affected market arrivals, which led to the continuous decrease in stocks. Stocks in Tianjin fell slightly as downstream orders were moderate with bearish zinc prices, and downstream continued to purchase on rigid demand.

Stocks across the three major trading hubs (Shanghai, Tianjin and Guangdong) fell 10,300 mt this week, after a 6,000 mt decrease last week.