SHANGHAI, Jan 17 (SMM) – Zinc inventories in China continued to trend higher this week, as consumption was stagnated with downstream processors, except for those in east China, closed for the Chinese New Year holiday.

SMM data showed that social inventories of refined zinc across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei increased 3,400 mt in the week ended January 17 to 112,000 mt, after an increase of 1,100 mt in the previous week. Between Monday and Friday, the stocks gained 1,800 mt.

Unlike rivals in Guangdong, Tianjin and other regions, downstream consumers in east China maintained operation this week, which helped deplete stocks in Jiangsu, Zhejiang and Shanghai.

Fewer-than-expected arrivals also contributed to inventory reduction in Shanghai, as smelters shifted to direct shipments to downstream consumers and as logistical services slowed ahead of the holiday.

In the week ended January 17, social inventories of refined zinc across Shanghai, Tianjin and Guangdong jumped 4,600 mt, much larger than a build of 500 mt in the week ended January 10.