Zinc social inventories fell 17,400 mt on week

SHANGHAI, Sep 25 (SMM) – Zinc inventories in China fell sharply this week, primarily propelled by a sharp decrease in Tianjin and Guangdong.

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei decreased 17,400 mt in the week ended September 25 to 143,400 mt, after an increase of 2,000 mt in the previous week. The stocks dropped 16,700 mt from Monday September 21.

Zinc inventories in east China’s Shanghai remained unchanged as imported zinc flew into the market, the arrivals of smelters rose with stepped-up production at smelters, and the demand for downstream restocking at low prices also improved.

In south China's Guangdong, a few of the traders delivered cargoes to east China and downstream users restocking at low prices improved before the National Day holidays, leading to the sharp drop in local zinc inventories.

Zinc inventories in north China's Tianjin has declined sharply, as downstream purchase improved with a sharp decline in zinc prices, and the demand for downstream pre-holiday stockpiling has risen. 

Stocks across the three major trading hubs (Shanghai, Tianjin and Guangdong) fell 14,200 mt this week, after a 300 mt increase last week.