Zinc social inventories fell 9,000 mt over weekend as cargo relocation continued

SHANGHAI, Apr 27 (SMM) – Zinc inventories in China extended their declines over the weekend as the removal of cargoes from south China continued ahead of the restoration of expressway toll fees. 

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei stood at 237,500 mt as of Monday April 27, down 9,000 mt from Friday April 24 and 28,100 mt from Monday April 20.

Stocks in Guangdong continued their significant decline as reduced freight charges caused by the crude price crash encouraged downstream consumers to buy cheaper cargoes in Guangdong or traders to move cargoes from Guangdong to east and north China to seek arbitrage opportunities.

Over the weekend, stocks in Tianjin inched up as some cargoes delivered from Guangdong arrived. Some cargoes remained en route, and that, coupled with robust demand, contributed to lower stocks in Shanghai.

Compared to last Friday, social inventories of refined zinc across Shanghai, Tianjin and Guangdong decreased 6,500 mt.