Downstream purchases cap increase in zinc social stocks

SHANGHAI, Jan 18 (SMM) – Moderate inflows of imported zinc grew social inventories, but downstream stockpiling ahead of CNY capped inventory gains. Social inventories in Shanghai, Guangdong and Tianjin changed little on the week, and stood at 107,200 mt as of Friday January 18, up some 2,500 mt from Friday January 11 and up 500 mt from Monday January 14, SMM data showed.

Next week, downstream plants will begin to close for the holiday and this will slow purchases, which will further expand social stocks.