Zinc held upside this month but the gains were subdued on back of fall in equity markets which raised concerns about further deepening of recession and low demand. The global zinc market was in surplus by 203,000 tonnes in the first four months of 2009 as per the Lisbon-based International Lead and Zinc Study Group.
Global refined zinc use was 3.287 million tonnes compared with 3.724 million a year earlier whereas world refined zinc output was 3.490 million tonnes, down from 3.826 million a year earlier. However this scenario was in the first quarter of 2009 but the coming days might see an upward movement in the prices of the metal as the demand is likely to improve in the coming months.
Trading platform that even a 5 year old can trade. Join now China has discontinued the restocking of the metal currently but is expected to continue with it in another one or two months which will support the prices in the second half of 2009. Zinc traded firm during June, riding on the overall positive sentiment amongst base metals. Market seems to be consolidating in an upward sloping trend channel with a lot of price overlap amidst high and low ranges as against a consistent upsurge seen in other base metals like Copper and Lead.
Purely by this logic alone Zinc seems to be most susceptible to price correction. Hence bulls are advised caution at higher levels. Alternatively, any breakout from 80.90 should cancel out the choppy behaviour for the metal and shift the bias from mildly bullish to strongly bullish.
Courtesy: Religare Commodities Explore Commodity Online Mobile Services
