MCX Zinc under long liquidation; Resistance seen at 194.7
Commodity Online | November 14 2019
UPDATED 09:50:45 IST

MCX Mentha Oil likely to move in a range of 1279.4-1308.8

MCX Aluminium may trade between 131.4-134.4 levels

MCX Nickel likely to move in a range of 977-1014.2

MCX Zinc under short covering; Resistance seen at 184.3

MCX Copper under short covering; Resistance seen at 441.1

Technically Zinc market is under long liquidation as market has witnessed drop in open interest by 14.22% to settled at 2545 while prices down 1.7 rupees.

Now MCX Zinc is getting support at 192.5 and below same could see a test of 191.5 levels, and resistance is now likely to be seen at 194.7, a move above could see prices testing 195.9.

Zinc on MCX settled down 0.87% at 193.4 after data published that LME zinc inventories reversed its decline with a buildup of 6.29%. China’s monthly production of refined zinc hit a fresh record high October, as high margins encouraged smelters to step up operations following a break through capacity bottlenecks since April.

Data showed that about 529,300 mt of refined zinc was produced across China last month, up 2.64% from September and 15.24% from October 2018. Zinc production from January to October totalled 4.78 million mt, up 7.93% from the same period last year.The survey showed high capacity utilisation rates across Chinese zinc smelters, with some ramping up feeding or putting off maintenance to chase high margins.

China’s zinc production is likely to fall 2.21% to 517,500 mt in November, with a year-over-year increase of 13.4%, as Henan Yuguang and Wenshan Zinc & Indium conduct maintenance.Shanxi, major coal-producing hub in north China, has ordered its local environmental authorities to drop blanket production cuts in the fight against air pollution this winter.

In a notice earlier this month, the smog-prone province required city authorities to implement winter production curbs on a case-by-case basis. Companies that meet certain environmental standards will be exempt from production restrictions. The winter production curbs will target main polluting sources including steel, nonferrous, coke, chemicals, building materials and casting sectors.

Trading Ideas:
--Zinc trading range for the day is 191.5-195.9.
--Zinc prices dropped after data published that LME zinc inventories reversed its decline with a buildup of 6.29%.
--China’s monthly production of refined zinc hit a fresh record high October, as high margins encouraged smelters to step up operations.
--Data showed that about 529,300 mt of refined zinc was produced across China last month, up 2.64% from September and 15.24% from October 2018.

Courtesy: Kedia Commodities

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