SMM data shows that social inventories of zinc ingots across seven major markets in China totalled 96,900 mt as of Friday October 27, down 5,600 mt from October 20 and down 5,700 mt from October 23.
The decrease in inventory in the Shanghai market was mainly due to the low arrivals of domestic cargoes and lower zinc prices which boosted stockpiling early in the week. In Guangdong, the large discounts against Shanghai prices drove cargo transfers between the two regions, depressing shipments arrivals in Guangdong. This, combined with buying on the dip, lowered inventories sharply in Guangdong. As for Tianjin market, arriving shipments of both domestic and imported zinc ingots, combined with environmental protection restrictions in the north, grew inventories. Inventory in Shanghai, Guangdong and Tianjin fell by a combined 4,400 mt.
![Guangdong zinc: Zinc prices stay high and fluctuate, downstream purchases mostly rigid demand [SMM midday comment]](https://imgqn.smm.cn/usercenter/qdibi20251217171755.jpg)
