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BEIJING: Deliverable zinc inventories in warehouses monitored by the Shanghai Futures Exchange (ShFE) fell 29.1 percent from the previous week, according to exchange data on Friday.

Decline was the sharpest on record since April 2007.

Shanghai zinc stocks at 34,930 tonnes, the lowest since November 2007, having fallen by 14,313 tonnes from the previous week.

China's production of zinc, which is used to galvanise steel, slipped by 3.5 pct year-on-year in July to its lowest monthly level since August 2013, the National Bureau of Statistics said on Thursday.

Despite slumping inventories and production, Shanghai zinc prices, which fell 1.2 percent on Friday, are down over 20 percent so far this year on concerns of oversupply.

Copyright Reuters, 2018

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