Zinc social inventories shrank 4,200 mt on week

SHANGHAI, Jan 15 (SMM) – Zinc inventories in China fell this week, with stocks in Shanghai and Guangdong decreasing relatively sharply. 

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei decreased 4,200 mt in the week ended January 15 to 145,800 mt. The stocks fell 8,200 mt from Monday January 11. 

Stocks in Shanghai decreased as downstream restocked more when zinc prices fell despite the inflow of imported zinc. In south China's Guangdong, the proportion of direct shipments to downstream smelters increased with limited arrivals and high demand for restocking at low prices, prompting stocks to hit a new low. Stocks in Tianjin piled up slightly as downstream operating rates continued to drop and smelters were unwilling to sell at low prices with limited restocking demand and decreased arrivals. 

Stocks across the three major trading hubs (Shanghai, Tianjin and Guangdong) fell 3,100 mt this week, after a 7,400 mt increase last week.