Why did Chinese Zinc Smelters Report Higher Raw Material Inventory Days in March Even with High Operating Rates?

Raw material inventory at smelters stood at 27.94 days of production in March, a month-on-month increase of 0.23 day.

Although the smelters maintained a high operating rate in March, some smelters stepped up their purchase of raw materials as domestic and imported zinc concentrate TCs were falling rapidly. This caused port inventories to drop fast.

In addition, an increasing number of mines in north China resumed production due to warmer weather and the ending of Two Sessions, growing domestic supply of zinc concentrate.