Zinc social inventories expanded 7,400 mt on week

SHANGHAI, Nov 20 (SMM) – Zinc inventories in China rose this week, with stocks in Shanghai and Tianjin rising relatively sharply.

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei increased 7,400 mt in the week ended November 20 to 175,200 mt. The stocks rose 9,000 mt from Monday November 16.

Stocks in Shanghai increased due to increased arrivals of some smelters and decreased downstream demand at high prices. In south China's Guangdong, increased shipments of the previous week led to the decline in local zinc inventories. Stocks in Tianjin continued to pile up as the market supply increased significantly, and environmental protection and limited production of some downstream factories ended, while the rise in zinc prices dampened downstream demand.

Stocks across the three major trading hubs (Shanghai, Tianjin and Guangdong) rose 6,900 mt this week, after a 700 mt decrease last week.