Pre-holiday stockpiling lowers zinc social stocks on week

SHANGHAI, Apr 4 (SMM) – Downstream stockpiling ahead of the Qingming Festival holiday during April 5-7 extended decline in social inventories of refined zinc as of Thursday April 4. 

Social inventories of refined zinc across Shanghai, Guangdong and Tianjin decreased by 8,300 mt from Friday March 29 and by 6,400 mt from Monday April 1 to stand at 204,100 mt as of Thursday April 4, SMM data showed. Lower inventories in Shanghai accounted for most of the declines. 

This week, deliveries from smelters to social warehouses remained limited, as some shipments directly went to downstream consumers. This, together with smaller seaborne arrivals amid import losses, also lowered the social stocks. 

SMM expects zinc social inventories to extend their drops in the second quarter.