Zinc social inventories shrink on sharp drop in Guangdong

SHANGHAI, Oct 19 (SMM) – Social inventories of refined zinc across Shanghai, Tianjin and Guangdong shrank 1,900 mt from Monday October 15 to stand at 156,600 mt as of Friday October 19 as stocks in Guangdong decreased by 4,300 mt, or some 15%, SMM data showed.

In Guangdong, warrants traded in the physical market after the delivery and downstream consumers stepped up procurement.

During the same period, stocks in Shanghai grew 2% as arrivals of imports and domestic materials were largely offset by downstream purchases. Stocks in Tianjin remained at relatively high levels so far this year.

SMM data also showed that the overall inventories across the three regions went up 3,100 mt from Friday October 12.

Overall stocks are likely to increase next week in anticipation of arrivals of imports and domestic materials.