Zinc social inventories inched up on increased arrivals

SHANGHAI, Jun 24 (SMM) – Zinc inventories in China inched up this week, primarily propelled by gains in Shanghai and Guangdong where saw a large number of arrivals.

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei increased 900 mt from last Friday June 19 to 218,400 mt as of Wednesday June 24, the last trading day before the Dragon Boat Festival holiday.

Notably, the stocks decreased 2,500 mt from Monday June 22.

Stocks across the three major trading hubs (Shanghai, Tianjin and Guangdong) increased 1,400 mt from last Friday, after being little changed in the previous week.

In Shanghai, imported zinc accounted for a large proportion of arrivals this week, and weak demand also contributed to the inventory increase as limited cargoes were delivered.

Stocks in Guangdong rose this week as smelters increased their shipments to the southern market after the price spreads with east China narrowed.

Stocks in Tianjin fell this week as seaborne arrivals did not enter social warehouses, but overall availability there remained ample.