Zinc on MCX settled up 0.8% at 164.35 tracking firmness from LME Zinc price which closed 0.6 per cent firmer at $US2,561 a tonne tracking firmness in LME prices as support seen after steel prices jumped. The International Lead and Zinc Study Group (ILZSG) recently released its annual demand/supply forecast for the zinc market. The group anticipates global demand for refined zinc to be greater than supply in 2017, keeping zinc markets in a deficit for a second consecutive year.
The ILZSG predicts a deficit of 226,000 tonnes, not much different from the deficit recorded last year. Average new home prices in China's 70 major cities rose 0.7 percent in April from the previous month, faster than the 0.6-percent gain posted in March. Economic growth in top metals consumer China will just about make Beijing's target of 6.5 percent this year, surveyed forecasted, as it slows from 6.9 percent in the first quarter.
On the economic calendar, the Eurozone’s annual inflation rate was confirmed at 1.9% in April, matching forecasts. While UK employers added workers to payrolls last month, with average hourly earnings climbing 2.4% annually in the three months ended March. All U.K. data were courtesy of the Office for National Statistics.
There was no major events scheduled from US zone on Wednesday. Market participants will turn their attention to speeches from the Federal Reserve and European Central Bank in the latter half of the week. Technically market is under short covering as market has witnessed drop in open interest by -4.43% to settled at 3585 while prices up 1.3 rupees, now Zinc is getting support at 163.6 and below same could see a test of 162.8 level, And resistance is now likely to be seen at 165.1, a move above could see prices testing 165.8.