Zinc social inventories added 28,300 mt from Monday

SHANGHAI, Feb 7 (SMM) – Zinc inventories in China continued to increase this week, but the buildup was limited, on the back of transportation curbs and delayed resumption of downstream operations aimed at containing the coronavirus outbreak. 

SMM data showed that social inventories of refined zinc across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei rose 28,300 mt from February 3 to stand at 217,300 mt as of Friday February 7, 88,300 mt higher from January 23. 

Shanghai saw a significant increase in refined zinc inventories this week. Recovery of downstream demand since next week may start to reduce the stocks, but the impact of the virus development on downstream production will remain a key factor to monitor. 

Compared to February 3, social inventories of refined zinc across Shanghai, Tianjin and Guangdong climbed 25,200 mt as of February 7.