Fewer imports extend declines in social stocks of refined zinc

SHANGHAI, Dec 21 (SMM) – Limited arrivals of imported cargoes extended declines in zinc social stocks this week. Purchases for long-term contracts at the year-end also tightened supplies in the market and buoyed spot premiums. 

Social inventories of refined zinc across Shanghai, Guangdong and Tianjin came in at 97,400 mt as of Friday December 21, down some 1,600 mt from Monday December 17 and down 4,600 mt from last Friday, SMM data showed.

Compared to Monday December 17, an influx of domestic cargoes from Tianjin to Shanghai grew zinc stocks across Shanghai warehouses. Inventories in Tianjin and Guangdong continued to shrink. 

In the short run, we do not expect overall social stocks to climb significantly across the three regions due to limited imports and restricted production at smelters.