By Bloomberg News
Aug. 31 (Bloomberg) -- Zinc fell to the lowest in more than a week in Shanghai as expanding inventory raised speculation supply may outpace demand for the metal used to galvanize steel.
Zinc stockpiles monitored by the Shanghai Futures Exchange climbed by 1.8 percent to 117,499 metric tons last week, the highest since introduction of the contract in 2007, according to exchange data. China’s cabinet said last week it’s studying curbs on overcapacity in industries including steel and cement as policy makers seek to rein in investment growth fueled by a record credit expansion this year.
“Investors and producers are turning cautious due to signs of weaker fundamentals and have stepped up selling,” said Zeng Qianling, an analyst at Jinrui Futures Co. from Shenzhen today.
Zinc for December delivery on the Shanghai exchange slumped as much as 2.2 percent to 15,000 yuan ($2,196) a ton, the lowest since Aug. 21, and last traded at 15,050 yuan.
Shanghai copper declined as much as 1.8 percent to 49,800 yuan a ton after climbing as much as 1.2 percent earlier to the highest since September 2008. Shanghai aluminum slid as much as 0.9 percent to 14,900 yuan a ton.
The London Metal Exchange is closed today for the summer bank holiday.
--Li Xiaowei. Editors: Richard Dobson, Wendy Pugh.
To contact the Bloomberg News staff on this story: Li Xiaowei in Shanghai at Xli12@bloomberg.net
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