Zinc social inventories fell on downstream buying after holiday

SHANGHAI, Oct 11 (SMM) – Social inventories of refined zinc across Shanghai, Tianjin and Guangdong shrank 7,200 mt from October 8 and came in at 138,900 mt as of October 11, after a buildup of 10,200 mt over the National Day holiday, showed SMM data.

Inventories fell in all the three areas during October 8-11, as downstream producers kept operating and restocking on relatively low prices of zinc and looser environmental curbs for holiday than previous years.

A closed import arbitrage window depressed seaborne supplies in Shanghai, which also prevented the stocks from rising.