Zinc social inventories rose 1,100 mt on week

SHANGHAI, Jan 10 (SMM) – Social inventories of refined zinc across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei stood at 108,600 mt as of Friday January 10, up 1,700 mt from Monday January 6 and 1,100 mt from Friday January 3, showed SMM data.

Shanghai and Zhejiang contributed to the inventory decline this week, as holiday-related logistical issues slowed deliveries to Shanghai while weaker demand deterred smelters from pouring their cargoes in Zhejiang. The volume of cargoes leaving Shanghai warehouses increased this week, as downstream consumers were keen to stockpile early in the week.

Most downstream processors will begin their Chinese New Year break this or next weekend. This, coupled with a rally in zinc prices, led to increases in stocks in Guangdong, Tianjin and other regions.

In the week ended January 10, social inventories of refined zinc across Shanghai, Tianjin and Guangdong inched up 500 mt.