Zinc social inventories extended decline on strong galvanising demand

SHANGHAI, Apr 3 (SMM) – Zinc inventories in China continued to fall sharply this week, propelled by substantial declines in Shanghai and Tianjin where galvanising plants saw strong orders and stepped up raw material procurement.

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei decreased 14,400 mt in the week ended April 3 to 292,600 mt, marking a third straight week of decline. Compared to Monday, the stocks shrank 11,400 mt.

Zinc ingot deliveries to social warehouses in Tianjin were limited this week, which also contributed to the sharp fall in inventories.

In Guangdong and Zhejiang, zinc alloy die-casters saw lesser orders and held back on raw material procurement.

This week, social inventories of refined zinc across Shanghai, Tianjin and Guangdong fell 11,500 mt, after declining 15,400 mt last week.