SHANGHAI, Feb 22 (SMM) – China's social inventories of refined zinc extended their increase in the second week after CNY as downstream customers returned slowly and deliveries from smelters expanded.

SMM data showed that social inventories of refined zinc across Shanghai, Guangdong and Tianjin rose 15,000 mt from Monday February 18, and increased 21,300 mt from Friday February 15, to stand at 208,200 mt as of Friday February 22.

Shanghai and Guangdong accounted for most of the increase. Domestic arrivals grew zinc social inventories in Shanghai by some 10,000 mt this week. This was despite a higher shipment of cargoes out of warehouses compared with a week earlier. 

Some smelters in the south recovered after production cuts, and this grew deliveries to social warehouses in Guangdong this week.

SMM expects the accumulation in social inventories to slow in the weeks ahead as more downstream consumers return from holiday.