Zinc social inventories shrank 1,600 mt over weekend

SHANGHAI, Dec 7 (SMM) – Zinc inventories in China fell over the weekend, primarily propelled by a decrease in Shanghai and Guangdong.

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei decreased 1,600 mt from last Friday December 4 to 165,100 mt as of Monday December 7. The stocks were down 5,700 mt from last Monday November 30.

Stocks in Shanghai decreased due to import loss and limited inflow of imported zinc. In south China's Guangdong, increased downstream restocking due to the low prices led to the continuous decline in local zinc inventories despite increased arrivals. Stocks in Tianjin started to pile up as arrivals at some smelters increased and downstream restocked for rigid demand.

Compared to last Friday, social inventories of refined zinc across the three major trading hubs (Shanghai, Tianjin and Guangdong) decreased 1,300 mt.