Imports grew social inventories of zinc over the weekend even as deliveries from smelters remained limited. Imports rose with an open import arbitrage window that has been open for two consecutive weeks.
Stocks across the major markets of Shanghai, Tianjin, and Guangdong came in at 109,800 mt as of Monday August 27, up 4,700 mt from Friday August 24 and up 8,600 mt from Monday August 20.
As of August 27, stocks across social warehouses in Shanghai jumped 3,800 mt from last Friday to 53,100 mt. This accounted for for most of the increase in social inventories.
We believes that social inventories are unlikely to drop this week if downstream consumption remains sluggish and if smelters increase deliveries as zinc prices pick up.