Zinc social inventories shrank 2,800 mt over weekend

SHANGHAI, Sep 28 (SMM) – Zinc inventories in China shrank over the weekend, with stocks in Shanghai rising slightly while inventories in Guangdong and Tianjin extending declines.

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei fell 2,800 mt from last Friday September 25 to 140,600 mt as of Monday September 28. The stocks were down 19,500 mt from last Monday September 21.

Stepped-up production at smelters, rising arrivals of cargoes in the market and inflow of imported zinc significantly lifted inventories in Shanghai. Stocks in Guangdong continued to shrink as downstream users stockpiled actively ahead of the National Day holidays. Downstream users in Tianjin stepped up procurement as local zinc prices fell sharply.

Compared to last Friday, social inventories of refined zinc across the three major trading hubs (Shanghai, Tianjin and Guangdong) shrank 1,700 mt.