Stagnant purchases, stable arrivals expand social inventories of refined zinc

SHANGHAI, Feb 11 (SMM) – Zinc inventories in China grew sharply over the Chinese New Year break, as downstream consumers suspended purchases while smelters kept regular production.

Arrivals of seaborne materials also expanded inventories.

Social inventories of refined zinc across Shanghai, Tianjin and Guangdong rose 40,700 mt, or 31.6% from Friday February 1 to stand at 171,000 mt as of Monday February 11, SMM data showed.

The stocks are expected to gain moderately before downstream consumers return to normal production.