Zinc social inventories shrank 3,500 mt on week

SHANGHAI, Jan 29 (SMM) – Zinc inventories in China fell this week, with stocks in Shanghai and Tianjin decreasing relatively sharply.

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei decreased 3,500 mt in the week ended January 29 to 138,200 mt. The stocks fell 8,400 mt from Monday January 25.

Stocks in Shanghai decreased sharply as downstream restocked when zinc prices fell, which drove the demand, and limited imported zinc flowed into the warehouse. In south China's Guangdong, arrivals increased and more downstream smelters took a holiday, prompting stocks to rebound. Stocks in Tianjin dropped as smelters reduced shipments when zinc prices fell, and downstream restocked raw zinc ingots at low prices.

Stocks across the three major trading hubs (Shanghai, Tianjin and Guangdong) fell 2,600 mt this week, after a 3,400 mt decrease last week.