Zinc social inventories expanded 1,500 mt on week

SHANGHAI, Aug 28 (SMM) – Zinc inventories in China rose this week, primarily propelled by a sharp increase in Tianjin and losses in Shanghai and Guangdong.

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei increased 1,500 mt in the week ended August 28 to 177,200 mt, after an increase of 600 mt in the previous week. The stocks expanded 2,500 mt from Monday August 24.

Inventories in east China’s Shanghai rose slightly this week as inflows of imported materials increased sharply with increasing downstream demand.

In south China’s Guangdong, downstream consumers stepped up purchases and zinc prices declined, leading to a sharp decrease in inventories.

Inventories in north China’s Tianjin surged this week due to improved transportation and rising arrivals. Production was restricted by environment protection, leading to the sluggish downstream demand. This also accounted for the rise in the inventories.

Stocks across the three major trading hubs (Shanghai, Tianjin and Guangdong) fell 1,600 mt this week, after a 700 mt decline in the week before.