Zinc prices at India’s Multi Commodity Exchange is expected to trade in a range between 196.8-204.4 levels on Thursday.
Zinc on MCX settled down 1.78% at 201.20 tracking weakness from LME Zinc fell 2 percent to $3112 per tonne after data out of China overnight showed growth in its burgeoning services sector at a three-month high after U.S. President Donald Trump’s long-promised tax cuts took another big step forward in Washington.
The Caixin/Markit services purchasing managers' index (PMI) rose to 51.9 in November, up from 51.2 in October and the highest reading since August. The services data had less impact on the prices than Friday's manufacturing data, which came in below expectations. Pressure also seen after US Commerce Department on Tuesday slapped steep import duties on steel products from Vietnam that originated from Chinese-made steel.
Meanwhile, tax reform legislation will remain on the agenda, as Congress works to push through a bill that could give President Donald Trump his first major legislative accomplishment of his presidency. Republicans hope to reach a deal by Christmas.
The Trump administration has said its tax cuts will generate growth and spark inflation, which investors hope will prompt a faster pace of monetary tightening by the Fed. Friday's deadline on a possible government shutdown will also be on investors' minds.
--Zinc trading range for the day is 196.8-204.4.
--Zinc prices dropped on doubts about the strength of Chinese demand for the metal and an improving supply picture.
--A gauge of manufacturing activity in China declined to the lowest in five months in November.
--South Korea seeks to buy 1,000 tonnes of zinc for February arrival, state-run Public Procurement Service said.
Courtesy: Kedia Commodities