SHANGHAI, Aug 27 (SMM) – Imports grew social inventories of zinc over the weekend even as deliveries from smelters remained limited. Imports rose with an open import arbitrage window that has been open for two consecutive weeks.
As of August 27, stocks across social warehouses in Shanghai jumped 3,800 mt from last Friday to 53,100 mt. This accounted for for most of the increase in social inventories.
SMM believes that social inventories are unlikely to drop this week if downstream consumption remains sluggish and if smelters increase deliveries as zinc prices pick up.