Zinc social inventories dropped 6,900 mt on week

SHANGHAI, Jan 3 (SMM) – Social inventories of refined zinc across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei stood at 107,500 mt as of Friday January 3, down 1,800 mt from Monday December 30 and 6,900 mt from Friday December 27, showed SMM data.

Shanghai primarily contributed to the decline in overall stocks this week, as lower spot prices encouraged downstream consumers to buy to replenish their stocks and due to limited inflows of imported materials.

Buyers in Guangdong, however, remained on the sidelines this week, as they were pessimistic about future spot premiums. This, combined with a sharp increase in arrivals, lifted stocks of refined zinc in Guangdong.

There were limited shipments arriving at Tianjin this week, where saw some deliveries leaving for east China meanwhile. Inventories of refined zinc in Tianjin declined just moderately this week, however, as downstream consumption weakened.

As of January 3, social inventories of refined zinc across Shanghai, Tianjin and Guangdong shrank 7,300 mt from a week ago.