Zinc social inventories fell as downstream consumers bought on dips

SHANGHAI, Nov 15 (SMM) – Social inventories of refined zinc across Shanghai, Tianjin and Guangdong decreased by 6,400 mt from last Friday November 8 and 5,300 mt from Monday November 11 to 135,100 mt as of November 15, showed SMM data.

Shanghai and Guangdong contributed to the inventory decline, shrinking 7,000 mt and 3,500 mt on the week, respectively, as downstream consumers stepped up purchases after prices fell.

Despite a moderate decline in arrivals, stocks in Guangdong decreased as end-market demand remained robust.

Downstream consumers in Tianjin, however, held back from purchasing, bolstering zinc stocks across local social warehouses by 4,100 mt this week, even as transport troubles limited arrivals.