MCX settled up 1.8% at 178.55 tracking gains from LME Zinc prices which have bounced after touching a three-week low closed up 1 per cent at $US2,736, recovering from a low of $US2,702, the weakest since March 14, and after falling 2.2 per cent on Monday. 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.
Yesterday prices also seen support after the a cyclone in Australia damaged transport routes for coking coal, fuelling a jump in prices. While upside was capped after US manufacturing activity retreated from a 2-1/2-year high in March amid a decline in production and an inventory drawdown, but a surge in factory jobs indicated that the sector's energy-led recovery was gaining momentum.
While factories across Europe and much of Asia posted another month of solid growth in March, rounding off a strong quarter for manufacturers, even though exporters fear a rise in U.S. protectionism could snuff out a global trade recovery. Now Basemetals investors were looking for any clues as to President Trump's tax plan, ahead of his meeting with the National Economic Council--expected on Thursday.
Worried about the prospect of a trade war, American businesses operating in China nonetheless want President Donald Trump to wring some concessions on market access from China's leader Xi Jingping when the two meet this week. Now technically market is under fresh buying as market has witnessed gain in open interest by 3.52% to settled at 4729 while prices up 3.15 rupees, now Zinc is getting support at 176.9 and below same could see a test of 175.1 level, And resistance is now likely to be seen at 179.6, a move above could see prices testing 180.5.