Zinc Ingot Social Inventory across Seven Major Markets in China Declined 600 mt from Monday_SMM

SHANGHAI, Aug 26 (SMM) – According to SMM data, the zinc ingot inventories across seven major markets in China totalled 125,400 mt as of August 26, down 600 mt from Monday and 6,800 mt from the previous week. Since the price difference of premiums between Shanghai and Tianjin expanded at the beginning of the week, some goods holders shipped their cargoes from Shanghai to Tianjin, leading to a decline in the Shanghai inventory. In Guangdong, the arrivals were relatively tight, and some goods holders also transfer zinc ingots to Tianjin for its high premiums. At the same time, some smelters also delivered their goods to Tianjin, which accelerated the destocking of Guangdong inventory. In addition, after the zinc prices rallied, downstream traders purchased on rigid demand for the fears of further rise in the future. Therefore, the inventory in Guangdong dropped on the week. In Tianjin, the arrivals of goods from smelters in north China remained low. But, thanks to the high premiums in Tianjin, some stocks in Guangdong and Shanghai were transferred to there, contributing to a slight growth in Tianjin inventory as the market purchase on rigid demand was limited. It is expected that the Tianjin inventory will trend higher next week. Overall, the total inventory in Shanghai, Guangdong and Tianjin fell 1,400 mt, and that across seven major regions in China declined 600 mt from Monday.