Zinc On MCX Settled Up 0.09% At 166.85

Zinc on MCX settled up 0.09% at 166.85 Zinc settled flat as LME Zinc prices closed in a small backwardation for the first time since Feb. 20. Plans to boost infrastructure spending in China and the United States are bolstering market sentiment towards zinc, used to churn out everything from pipes to auto parts. China's exports and imports expanded less than expected in April, figures from the General Administration of Customs revealed. Exports grew 8 percent in April from the prior year, but slower than the expected growth of 11.3 percent and March's 16.4 percent increase. At the same time, imports logged a double-digit growth of 11.9 percent versus the expected expansion of 18 percent and around 20.3 percent rise in March. The global demand for refined zinc metal will exceed supply in 2017, despite sharp rise in zinc mine output.

ILZSG forecasts the refined zinc metal to end in deficit of 226,000 tonnes. Glencore said in its Q1 earnings report its zinc production at self-owned mines rose 9% on a yearly basis to 279,200 tonnes in the first quarter of 2017 due to steady production at Antamina mine. Meanwhile the dollar index remains on a back footing at 98.60, even the better than expected US employment report did not provide lift. The combination of weak dollar-based metals prices and a weak dollar will make metals prices even cheaper in local currencies. Technically market is under fresh buying as market has witnessed gain in open interest by 7.27% to settled at 3867 while prices up 0.15 rupees, now Zinc is getting support at 164.6 and below same could see a test of 162.4 level, And resistance is now likely to be seen at 168, a move above could see prices testing 169.2. 
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 

Suhani Verma

  • Image
  • Image
  • Image
    Blogger Comment
    Facebook Comment