SHANGHAI, Oct 15 (SMM) – Social inventories of refined zinc across Shanghai, Tianjin and Guangdong stood at 158,500 mt as of Monday October 15, up 5,100 mt from Friday October 12 and 11,200 mt from Monday October 8, SMM data showed.
Over the weekend, warehouses in Guangdong received significant arrivals as domestic smelters stepped up shipments. Many cargoes were put on warrant for delivery, given current high prices and wide spot discounts.
There was no significant change in stocks across Shanghai and Tianjin over the weekend. Widening Shanghai-Tianjin price spreads encouraged traders and smelters to send cargoes from Tianjin to Shanghai.
SMM expects social stocks of refined zinc across the three regions to extend their gains as smelters who offer high prices are keen to offload cargoes and as purchasing enthusiasm across downstream consumers is tepid.