Zinc On MCX Settled Down

Zinc on MCX settled down -0.54% at 183.5 on profit booking after rise seen in dollar and ahead of fresh economic data from China. Korea Zinc Inc, the world's third-largest zinc smelter, has agreed to take a 15 percent drop in annual processing fees for 2017 as smelters grapple with a dearth of mine supply. Activity in China's manufacturing sector unexpectedly expanded at the fastest pace in nearly 5 years in March, adding to evidence that the world's second-largest economy has gained momentum early this year, an official survey showed. 

U.S. President Donald Trump set the tone for a tense first meeting with Chinese President Xi Jinping next week by tweeting on Thursday that the United States could no longer tolerate massive trade deficits and job losses. Zinc mine supply has been shrinking as several blockbuster mines, such as Australia's Century and Ireland's Lisheen, have been tapped out with no new major lodes in the pipeline.

Korea Zinc said last month it planned to cut its refined zinc production by 7.7 percent to just under 600,0000 tonnes this year due to tightening supply and low treatment charges. London Metal Exchange zinc has risen 11 percent so far this year to $2,861 a tonne, having soared 60 pct last year, after prices touched seven year lows last January. 

Technically market is under long liquidation as market has witnessed drop in open interest by -23.57% to settled at 2961 while prices down -1 rupees, now Zinc is getting support at 182.3 and below same could see a test of 181.1 level, And resistance is now likely to be seen at 185.3, a move above could see prices testing 187.1.

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Suhani Verma

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