Zinc on MCX settled down -0.58% at 178.95 with a bunch of bearish fundamentals hitting the market, triggering a sell-off this week. Sentiments turned negative this week for Zinc prices after the update that China's zinc production will grow in March, As some smelters will conduct maintenance in February which will affected the output nearly 21,000 tonnes will restart.
Meanwhile the union representing striking workers at the Noranda Income Fund's zinc processing facility in Quebec, vowed on Thursday to take the company to court over the alleged use of strikebreakers. The market is watching the strike as zinc prices have more than doubled since the beginning of last year due to a shortage tied to mine closures and shutdowns.
The dispute with the plant's 370 workers, who walked off the job on Feb. 12, hinges on cuts being made in preparation for a change this year in an arrangement with Glencore Canada that is expected to boost expenses. Yesterday prices futher dropped as sentiments turned further weak after solid U.S. jobs data increased the likelihood of an interest rate hike this month.
US private sector job growth recorded its biggest increase in more than a year in February amid a surge in construction and factory hiring, suggesting the economy remains on solid ground despite an apparent further slowdown in the first quarter. Technically market is getting support at 177 and below same could see a test of 175.1 level, And resistance is now likely to be seen at 180.3, a move above could see prices testing 181.7.