Zinc social inventories fell 3,700 mt on week

SHANGHAI, Jul 31 (SMM) – Zinc inventories in China continued to fall this week, albeit by a slower pace as arrivals at some regions increased while high prices sidelined buyers.

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei decreased 3,700 mt in the week ended July 31 to 195,200 mt, compared to a decline of 7,800 mt in the previous week. The stocks dipped 2,400 mt from Monday July 27.

Stocks across the three major trading hubs (Shanghai, Tianjin and Guangdong) fell 3,600 mt this week, after a 7,800 mt decline in the week before.

Arrivals of domestic products at east China’s Shanghai increased this week, while inflows of imported materials remained limited. That, along with robust demand, lowered zinc social stocks in the region. 

Inventories in north China’s Tianjin fell this week as deliveries were affected by rail transport issues, while stocks in south China’s Guangdong rose as high zinc prices sidelined buyers and smelters reduced direct shipments to downstream consumers.