Social inventories of zinc across Shanghai, Tianjin and Guangdong shrank substantially from a week ago as imported cargoes moved directly downstream.
Inventories came in at 101,200 mt as of Monday August 20, down 21,900 mt from Monday August 13 and down 5,800 mt from last Friday, SMM data showed. Inventory declines in Shanghai and Guangdong accounted for most of the overall decline.
Most imported cargoes moved directly to downstream buyers while limited stocks entered warehouses. As zinc prices fell, smelters held back from selling while downstream made purchases for restocking.