Zinc social inventories shrank 700 mt over weekend

SHANGHAI, Sep 21 (SMM) – Zinc inventories in China shrank over the weekend, with stocks in Guangdong falling sharply while those in Shanghai and Tianjin extending gains.

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei fell 700 from last Friday September 18 to 160,100 mt as of Monday September 21. The stocks were down 6,100 mt from last Monday September 14.

Stepped-up production at smelters, rising arrivals of cargoes in the market and inflow of imported zinc significantly lifted inventories in Shanghai. A few traders in Guangdong delivered cargoes to east China, leading to the sharp drop in local zinc inventories. Stocks in Tianjin built up on tepid downstream demand.

Compared to last Friday, social inventories of refined zinc across the three major trading hubs (Shanghai, Tianjin and Guangdong) expanded 1,000 mt.