Zinc social inventories shrank 8,100 mt on week

SHANGHAI, Dec 11 (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 8,100 mt in the week ended December 11 to 158,600 mt. The stocks fell 6,500 mt from Monday December 7.

Stocks in Shanghai decreased slightly due to smelters’ maintenance affecting arrivals and limited inflow of imported zinc amid relatively stable downstream demand. In south China's Guangdong, restocking of other regions in Guangdong market and relatively high downstream demand led to the sharp decline in local zinc inventories, with stocks hitting a new low in the year. Stocks in Tianjin rose again as downstream orders weakened seasonally, and increasing zinc prices affected the demand.

Stocks across the three major trading hubs (Shanghai, Tianjin and Guangdong) fell 8,100 mt this week, after an 8,100 mt decrease last week.