Zinc social inventories extended gains by 12,100 mt on week

SHANGHAI, Mar 13 (SMM) – Zinc inventories in China continued to grow this week, as demand in some regions recovered slowly.

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei increased 12,100 mt in the week ended March 13 to 334,900 mt, compared to a gain of 9,400 mt in the previous week.

Notably, the stocks declined 3,000 mt from Monday March 9, propelled by a drop in Shanghai where downstream consumers were keen to buy after zinc prices tumbled.

Downstream consumers in Guangdong, meanwhile, held back on procurement after a buying spree on Monday, resulting in an increase in zinc social inventories in Guangdong this week.

Stocks in Tianjin also extended gains this week, as orders received by downstream producers recovered slowly.

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