Zinc On MCX Settled Up

Zinc on MCX settled up 2.2% at 188.4 on expectations the closure and suspensions of big mines will create shortages. Net spec positioning in LME zinc deteriorated for a third week in a row over February 24-March 3, according to the latest LME COTR. This was mainly driven by a build-up of shorts and was reinforced by long liquidation. In the physical market, premiums continued to strengthen last week in the USA due to the strike at Noranda Income Fund’s zinc processing facility in Canada, which is tightening available supply.

In Asia, premiums were stable amid little buying interest but may weaken in the near term if availability eases in the USA, as evidenced by the pick-up in cancelled warrants in New Orleans. In Europe, premiums were steady amid ample availability. While refined zinc production was little changed (+0.1%) in 2016, refined demand rose 3.6%, thanks primarily to China (accounting for 48% of total demand). Demand there rose 8.6%; as well, in India (accounting for 5% of world demand), demand surged by 14%.

Combined zinc inventories in Shanghai, Tianjin and Guangdong decreased 9,600 to 277,100 tonnes this past week. Shanghai and Guangdong witnessed further declines. Stocks in Tianjin grew. TCs of domestic zinc concentrate (50%) were traded at 3,600-4,000 yuan per tonne (zinc content) this past week. 

Technically market is under fresh buying as market has witnessed gain in open interest by 7.24% to settled at 6397 while prices up 4.05 rupees, now Zinc is getting support at 185.5 and below same could see a test of 182.5 level, And resistance is now likely to be seen at 190, a move above could see prices testing 191.5.

For Quick Trial – 8962000225 ✔
or mail us here: info@ways2capital.com
✆ - 0731-6626222 | Toll Free - 1800-3010-2007
Give a Missed Call for Free Trial - 09699997717


SHARE

Suhani Verma

  • Image
  • Image
  • Image
    Blogger Comment
    Facebook Comment

0 comments: