Zinc market under fresh buying; Support seen at 186.2
Commodity Online | February 18 2019
UPDATED 12:18:32 IST

MCX Mentha Oil may trade between 1631-1654.2 levels

MCX Aluminium under long liquidation; Support seen at 144.1

MCX Nickel under fresh selling; Support seen at 880.8

NCDEX Chana under short covering; Resistance seen at 4235

MCX Zinc under long liquidation; Support seen at 196.4

Technically Zinc market is under fresh buying as market has witnessed gain in open interest by 4.55% to settled at 3587 while prices up 6.4 rupees.

Now MCX Zinc is getting support at 186.2 and below same could see a test of 181.9 levels and resistance is now likely to be seen at 192.8, a move above could see prices testing 195.1.

Zinc on MCX settled up 3.48% at 190.45 as production of refined zinc in China declined 3.31% month on month and 11.46% year on year to stand at 433,600 mt in January.

Output at Zhuzhou Smelter Group continued to decline in January as it took time for its new plant to ramp up capacity. For the same month, Hechi Nanfang cut production for maintenance on power issues while Hanzhong Zinc maintained its output.

Chihong Zinc and Germanium recovered from production cuts and Wenshan Zinc and Indium expanded production. China's producer price inflation slowed for a seventh straight month in January to its weakest pace since September 2016, raising concerns the economy may see the return of deflation as domestic demand cools.

China has pledged to end market-distorting subsidies for its domestic industries but offered no details on how it would achieve that goal, according to three people familiar with the U.S.-China trade talks in Beijing. Dollar-denominated exports for the month rose 9.1% from a year ago, according to Chinese customs data.

China's exports in January were expected to have contracted 3.3% from a year earlier, compared with the previous month's 4.4% decline. January dollar-denominated imports, meanwhile, fell 1.5% on the year, which was far better than expectations of a 10.2% decline from a year earlier. Imports in December fell 7.6% from a year ago.

China's overall trade surplus was $39.16 billion in January and exceeded the expected $34.3 billion.         

Trading Ideas:
--Zinc trading range for the day is 181.9-195.1.
--Zinc prices rallied as production of refined zinc declined 3.31% month on month and 11.46% year on year to stand at 433,600 mt in Jan
--Output at Zhuzhou Smelter Group continued to decline in January as it took time for its new plant to ramp up capacity.
--Stocks across Shanghai, Guangdong and Tianjin rose 16,000 mt from Monday to stand at 187,000 mt as of Friday Feb 15

Courtesy: Kedia Commodities

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