LONDON (Reuters) – Chinese zinc producers are rushing to send 30,000 to 40,000 metric tons of refined zinc to warehouses registered with the Shanghai Futures Exchange (ShFE) ahead of November contract expiry on Friday, three sources with direct knowledge said.
That tonnage will take zinc stocks in the ShFE system to between 56,524 to 66,524 tons and is likely to hit prices of the metal, used to protect steel from corrosion. Already they have fallen by 4% to 24,638 yuan since Friday.
More than a dozen of China’s producers are delivering zinc to the ShFE, the sources said. They expect surpluses in the world’s biggest consumer as the country’s construction and real estate sectors show little sign of recovery.
Among 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…
