Shanghai-bonded zinc stocks rose on wider import losses

SHANGHAI, Mar 20 (SMM) – Inventories of zinc ingot across Shanghai-bonded areas rose this week, as import losses widened after the ratio of domestic refined zinc prices to prices overseas fell.

SMM data showed that Shanghai bonded zinc stocks increased 2,300 mt in the week ended March 20 to 75,500 mt, after a revised 1,800 mt decline in the previous week.

Stocks are expected to continue to trend higher given shipments en route. Shipments of zinc ingots outside China now face risks of disruption as many countries have put in place more stringent efforts to contain spreading of the COVID-19 pandemic worldwide.