Zinc on MCX settled down -1.43% at 166 felling to a new three-month trough as the market focus is on receding supply worries. LME zinc ended down 1.8 percent at $2,570, having hit its lowest since early January at $2,558. Diversified miner Vedanta Resources said refined zinc production at its India unit rose nearly 40 percent in the fourth quarter. Zinc continues to see plenty of sellers lined up on every rally amid increasingly aggressive CTA selling and ongoing long liquidation.
Chinese consumer prices weakened further in March, but were little changed compared to a year ago, while producer prices rose at a steady pace. Beijing’s official consumer price index (CPI) rose 0.9% from a year ago, after slowing to 0.8% in February, the National Bureau of Statistics said in a report on Wednesday. UK consumer prices rose 0.4% in March compared with expectations of a 0.3% increase and the year-on-year rate was unchanged at 2.3%. The annual rate was in line with consensus forecasts and equalled the highest rate since September 2013.
The core inflation rate declined to 1.8% from 2.0% and compared with expectations of a smaller decline to 1.9%. The ILZSG estimates that the market was in a deficit of 27,400 tonnes in January 2017 compared with a surplus of 6,000 tonnes in January 2016. The zinc market was in a deficit of 268,000 tonnes in 2016 compared with a surplus of 189,000 tonnes in 2015. Technically market is under fresh selling as market has witnessed gain in open interest by 8.93% to settled at 6429 while prices down -2.4 rupees, now Zinc is getting support at 164.4 and below same could see a test of 162.8 level, And resistance is now likely to be seen at 168, a move above could see prices testing 170.