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China manufacturers rush to deliver surplus zinc to Shanghai exchange

Chinese zinc manufacturers are rushing to send out 30,000 to 40,000 metric lots of refined zinc to warehouses registered with the Shanghai Futures Exchange (ShFE). ahead of November agreement expiry on Friday, 3 sources with. direct understanding stated.

That tonnage will take zinc stocks in the ShFE system to. between 56,524 to 66,524 lots and is likely to hit rates of the. metal, utilized to secure steel from deterioration. Already they have. fallen by 4% to 24,638 yuan because Friday.

More than a lots of China's manufacturers are providing zinc. to the ShFE, the sources stated. They expect surpluses in the. world's most significant consumer as the country's building and construction and genuine. estate sectors show little sign of recovery.

Amongst those delivering their unsold zinc to ShFE warehouses. are subsidiaries of Zijin Mining and Jiangxi Copper. , the sources said.

ShFE, Zijin and Jiangxi Copper did not react to emails and. require remark.

The sources might not be called since they were not. authorised to speak publicly.

Zinc stocks in ShFE-monitored warehouses have actually almost doubled. today with shipments of 24,039 tonnes. Overall stocks stood. at 50,563 tonnes as of Thursday. << WSZN-TOTAL-D > The rate of boost in

ShFE zinc stocks will depend on how. quickly the Shanghai exchange authorizes the deliveries. The. sources expect to see higher levels on Friday when the regular monthly. contract grows. Market individuals holding zinc positions on ShFE should then. choose whether to close or roll over their positions. Delivering. physical metal is one way to close their short positions or. contracts to offer zinc. Those that have taken out bets zinc would fall have actually been.

frustrated as it has been the best performing metal on the ShFE. ShFE's front month zinc contract has gained 16% so far this.

year to 24,975 yuan per heap, surpassing the 6.4% rise. in copper and 5.7 %increase in aluminium. China's August zinc intake shrank by 3% to 581,000.

tonnes, World Bureau of Metal Statistics information revealed. A Reuters poll published last month showed the global zinc.

market is expected to see a surplus of 115,000 heaps next year.

(source: Reuters)