Downstream purchases lower Shanghai social stocks of refined zinc amid limited arrivals

SHANGHAI, Dec 7 (SMM) – Social inventories of refined zinc across Shanghai, Guangdong and Tianjin came in at 108,400 mt as of Friday December 7, down 3,100 mt from Monday December 3 and 2,600 mt from Friday November 30, SMM data showed.

Between Monday and Friday, stocks in Shanghai decreased by 2,900 mt, or 6.7%, as reduced seaborne arrivals failed to offset downstream purchases.

Stocks in Tianjin and Guangdong held stable this week.

SMM also learned that some smelters in Tianjin delivered their cargoes to Shanghai this week. Most cargoes are still en route, which didn’t help bolster stocks in Shanghai.

With output bottlenecks across smelters, social inventories of refined zinc in China are unlikely to grow significantly in the near term without substantial inflows of seaborne materials.