Limited arrivals, more purchases lower zinc social inventories

SHANGHAI, Mar 22 (SMM) – Social inventories of refined zinc across Shanghai, Guangdong and Tianjin declined 8,300 mt from Monday March 18 and 10,100 mt from Friday March 15 to stand at 220,300 mt as of Friday March 22, SMM data showed.

Zinc stocks in Shanghai lost some 9,000 mt from a week ago, accounting for the majority of the inventory decline across the three regions as limited shipments from domestic smelters or imported materials entered social warehouses in the eastern city this week.

The imminent value-added tax cuts improved purchasing interest among downstream consumers, which also lowered inventories.

Zinc social inventories are likely to extend declines next week if downstream consumption further recovers.