Social inventories of refined zinc to grow as higher prices prompt smelters to raise shipments

SHANGHAI, Dec 3 (SMM) – Social inventories of refined zinc across Shanghai, Guangdong and Tianjin nudged up 500 mt from Friday November 30 to stand at 111,500 mt as of Monday December 3, SMM data showed.

Cargoes that traders moved out of Shanghai warehouses are still en route to Guangdong or have reached downstream consumers.

Extending the gains made on Friday night, SHFE zinc is set to gain significantly at the start of the week, which might prompt smelters to increase shipments. Higher prices will keep downstream consumers on the sidelines. As a result, social stocks of refined zinc are expected to inch up this week.