Zinc prices settled firm on Saturday after prices dropped Friday dragged down by concerns over European debt crisis. Some pressure had been seen from the LME stock also which came up by 525mt, the total stock at LME is now at 837825mt.
Last Friday, Germany's Chancellor Angela Merkel stressed that the Germany government would not agree to issue euro zone bond, heavily depressing market sentiment. Although the US University of Michigan consumer confidence index came better than market expectation, it still failed to boost market sentiment.
The global refined zinc market was in surplus by 237,000 metric tons in the first seven months of the year, the International Lead and Zinc Study Group said.
Zinc stockpiles declined 142 tons to 414,494 tons, based on a survey of 15 warehouses in Shanghai, Guangdong and Zhejiang, while lead stored in the warehouses added 435 tons to 65,010 tons, the data showed. In yesterday's trading session zinc has touched the low of 101.85 after opening at 102, and finally settled at 102.15.
For today's session market is looking to take support at 101.9, a break below could see a test of 101.7 and where as resistance is now likely to be seen at 102.3, a move above could see prices testing 102.4.
Trading Ideas:
Zinc trading range is 101.7-102.4.
Zinc settled firm after prices dropped Friday dragged down by concerns over European debt crisis
ILZSG: Global zinc market in 237,000-ton surplus January-July
Zinc weekly stocks at Shanghai exchange came down by 142 tonnes
Courtesy: Kedia Commodities
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