SMM data shows that social inventories of zinc ingots across seven major markets in China decreased last week

SMM data shows that social inventories of zinc ingots across seven major markets in China totalled 70,900 mt as of Friday January 19, down 6,300 mt from January 12 and down 5,300 mt from January 15. The inventory in Shanghai decreased, mainly due to buying on the dip; the inventory in the Guangdong decreased as smelters shipped cargoes directly to the downstream buyers, resulting in low shipments arrivals in warehouses. Downstream buyers took delivery normally. In Tianjin, environmentally-driven production restrictions have been gradually lifted, and some downstream stockpiling before CNY increased, resulting in a significant decline in inventories. Inventory in Shanghai, Guangdong and Tianjin fell by a combined 5,100 mt.