Zinc social inventories increased 60,000 mt from pre-holiday

SHANGHAI, Feb 3 (SMM) – Zinc inventories in China rose significantly over the Chinese New Year holiday as downstream producers were away for the holidays while smelters maintained normal operations. 

SMM data showed that social inventories of refined zinc across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei increased 60,000 mt from January 23 to stand at 189,000 mt as of Monday February 3. Inventories in all the seven areas expanded, with Shanghai and Guangdong accounting for the majority of the overall increase. 

Refined zinc inventories in China are expected to rise further post-holiday as some cargoes that shipped during the holidays remain on route due to logistics issues and coronavirus outbreak. 

Compared to January 23, social inventories of refined zinc across Shanghai, Tianjin and Guangdong climbed 54,100 mt as of Feburary 3.