Zinc social inventory growth slowed on consumption recovery

SHANGHAI, Mar 6 (SMM) – Zinc inventories in China grew further slower this week, as downstream consumers reopened or ramped up operations.

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei increased 9,400 mt in the week ended March 6 to 322,800 mt, about half of the 18,900 mt gain in the previous week. Compared to Monday March 2, the stocks rose 3,700 mt.

Greater orders from end-users also prompted downstream consumers to step up zinc ingot procurement, as zinc prices declined.

The biggest inventory gain was seen in Tianjin this week, as orders from end-users there have yet to recover.

This week, social inventories of refined zinc across Shanghai, Tianjin and Guangdong increased 8,400 mt, after expanding 20,500 mt last week.