Limited arrivals lower zinc social inventories

SHANGHAI, Jul 12 (SMM) – Zinc social inventories across Shanghai, Tianjin and Guangdong continued to fall this week, as warehouses saw limited arrivals, either from domestic smelters or of seaborne materials.

SMM data showed that stocks across the three regions decreased by 3,900 mt from Friday July 5 and 1,600 mt from Monday July 8 to stand at 146,500 mt as of Friday July 12.

Limited arrivals and bargain-hunting purchases by downstream consumers lowered stocks in Shanghai this week, while stocks in Tianjin shrank as summer maintenance across northern smelters reduced shipments to social warehouses.

Zinc social inventories are expected to pick up as consumption weakens in a low season.