Technically Zinc market is under fresh buying as market has witnessed gain in open interest by 5.89% to settled at 1600 while prices up 3.35 rupees.
Now MCX Zinc is getting support at 162.3 and below same could see a test of 159.7 levels, and resistance is now likely to be seen at 166.3, a move above could see prices testing 167.7.
Zinc yesterday settled up by 2.07% at 164.85 as a surge in coronavirus cases fuelled worries about mine shutdowns and shortages.
Zinc inventories in China inched up this week, primarily propelled by gains in Shanghai and Guangdong where saw a large number of arrivals.
Data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei increased 900 mt from last Friday June 19 to 218,400 mt.
Inventories of zinc ingot across Shanghai-bonded areas rose slightly, due to increased seaborne arrivals including SMC and KZ, and reduced deliveries amid lower ratio of domestic prices to prices overseas.
China’s refined zinc output fell as expected in May, as fast declines in TCs for domestic zinc concentrate depressed Chinese smelters production enthusiasm and led to output cut or maintenance at smelters in Hunan and Sichuan, showed the latest survey.
Some smelters in Inner Mongolia, Yunnan, Guangxi and Gansu also carried out maintenance as scheduled, and smelters that recovered from maintenance in May were mostly located in Yunnan, Qinghai and Hunan.
Confidence among French manufacturers improved to a three-month high in June as production expectations bounced back after containment measures related to coronavirus were eased, survey results from the statistical office Insee showed.
--Zinc trading range for the day is 159.7-167.7.
--Zinc gained as a surge in coronavirus cases fuelled worries about mine shutdowns and shortages.
--Data showed that social inventories of zinc ingots in china inched up this week, as consumption faltered.
--China’s refined zinc output fell as expected in May, as fast declines in TCs for domestic zinc concentrate depressed Chinese smelters production enthusiasm.
Courtesy: Kedia Commodities