Zinc social inventories shrank 4,100 mt on week

SHANGHAI, Dec 18 (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 4,100 mt in the week ended December 18 to 154,500 mt. The stocks fell 8,600 mt from Monday December 14.

Stocks in Shanghai decreased due to smelters’ maintenance affecting arrivals and limited inflow of imported zinc amid stable downstream rigid demand. In south China's Guangdong, larger arrivals 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 as downstream orders weakened seasonally, and increasing zinc prices affected the demand.

Stocks across the three major trading hubs (Shanghai, Tianjin and Guangdong) fell 1,700 mt this week, after an 8,100 mt decrease last week.