Zinc social inventories shrank 1,500 mt on week

SHANGHAI, Dec 31 (SMM) – Zinc inventories in China fell this week, with stocks in Shanghai decreasing relatively sharply. 

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei decreased 1,500 mt in the week ended December 31 to 141,500 mt. The stocks fell 4,700 mt from Monday December 28. 

Stocks in Shanghai reached a new low as downstream restocked at low prices before year-end. In south China's Guangdong, there were still many orders for die-casting zinc alloys, and decreased prices stimulated end-user restocking demand, leading to the continuous decline in local zinc inventories. Stocks in Tianjin piled up as smelters actively shipped goods to recoup funds, and there were still some zinc ingots that had not been picked up from the warehouse after the downstream restocked at low prices. 

Stocks across the three major trading hubs (Shanghai, Tianjin and Guangdong) rose 900 mt this week, after an 8,800 mt decrease last week.