Zinc On MCX Settled Up 1.23% At 168.90

Zinc on MCX settled up 1.23% at 168.90 as some investors looked for bargains buy after sharp losses on fresh signs of a slowdown in Chinese demand. While yesterday prices gained as support seen after the news that China 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, the head of Hong Kong-based metals supplier Lee Kee Group said on Monday. That could support global prices for the base metal that have eased this year after surging in 2016 in the wake of the closure of several giant mines. China’s refined zinc production fell to 413,000 tonnes in April 2017, a drop of 3.95% month-on-month and 5.92% year-on-year. Total refined zinc output in the first four months of the year was 1.711 million tonnes, a fall of 1.84% on a yearly basis.

Lower zinc prices and domestic zinc concentrate TCs ate into profit at domestic zinc smelters. Besides, enhanced environmental protection in some regions affected mine production, tightening raw material supply for zinc smelters. An increasing number of smelters chose to conduct maintenance. Now Investors will also be looking ahead to Friday’s U.S. data on inflation and retail sales to gauge if the economy is on a strong enough footing for another rate hike as soon as next month. Technically market is under fresh buying as market has witnessed gain in open interest by 0.59% to settled at 3890 while prices up 2.05 rupees, now Zinc is getting support at 166.7 and below same could see a test of 164.4 level, And resistance is now likely to be seen at 171, a move above could see prices testing 173. 
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Suhani Verma

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