Zinc social stocks continue growth amid slow recovery of consumption

SHANGHAI, Mar 15 (SMM) – Social inventories of refined zinc across Shanghai, Tianjin and Guangdong continued to grow this week as the two political sessions in Beijing slowed the recovery of downstream consumption.

SMM data showed that social inventories of refined zinc across the three areas unexpectedly rose by 7,300 mt from Friday March 8 and by 8,300 mt from Monday March 11 to stand at 230,300 mt as of Friday March 15.

Some smelters increased shipments to social warehouses ahead of the delivery day on March 15, and this also expanded overall stocks on the week. 

SMM expects the inventories to shrink next week as demand recovers after the political sessions.