Zinc social inventories shrink as consumers stockpile on lower prices

SHANGHAI, Apr 19 (SMM) – Social inventories of refined zinc continued to shrink this week as lower prices of zinc drove downstream consumers to stockpile, SMM data showed on Friday April 19.

Social inventories of refined zinc across Shanghai, Guangdong and Tianjin decreased by 16,600 mt from Friday April 12, and by 9,700 mt from Monday April 15, to stand at 186,500 mt as of Friday April 19. 

Inventories in all the three areas declined, with stocks across Shanghai warehouses posted the greatest drop as limited seaborne arrivals and downstream restocking lowered stocks. Deliveries from smelters prevented stocks in Tianjin and Guangdong from dipping significantly. 

SMM expects that the recovery of consumption will continue to lower inventories next week.