SHANGHAI, Jul 20 (SMM) – Zinc social inventory in Shanghai, Guangdong and Tianjin inched up nearly 700 mt from a week ago to 99,900 mt as of Friday July 20 as downstream buyers hesitated to purchase.
Inflows of imported materials in Shanghai were not as much as expected with buyers mostly taking a watch-and-wait stance on volatile zinc prices. Arrivals of domestic cargoes were also limited, SMM learned.
While inventories fell 4,500 mt in Shanghai, a rise of 5,200 mt of stocks in Tianjin contributed to the overall increase, as buyers were unwilling to procure at high prices.
We expect inventories to edge up further next week if more imported zinc enters the market.