Post-holiday stockpiling to reduce zinc social inventories

SHANGHAI, May 6 (SMM) – Social inventories of refined zinc across Shanghai, Guangdong and Tianjin increased only by 1,400 mt from Monday April 29, to 170,000 mt as of Monday May 6, as deliveries from smelters and seaborne arrivals were limited during the Labour Day holiday.

A slew of smelters conducted maintenance during the holiday, and a closed import arbitrage window prevented imports from entering the domestic market. 

SMM expects purchases from downstream consumers after breaks to lower social inventories this week.