Zinc On MCX Settled Up 0.14%

Zinc on MCX settled up 0.14% at 174.65 and last week ended with its biggest weekly gain since November as inventories continued to fall, raising supply fears. The discount of the cash contract in LME zinc over the three-month contract has narrowed to zero, exchange data showed, suggesting a tighter LME market. Zinc inventories in LME warehouses fell to their lowest since early 2009 at 301,175 tonnes, exchange data showed, while on-warrant stocks hit their lowest since late 2007 at 81,150 tonnes.

Warrant cancellations were focused in LME warehouses in New Orleans, indicating that speculators rather than real demand were responsible. World Bureau of Metal Statistics (WBMS) reported Wednesday global zinc supply was in 106,000 tonnes of deficit during January-April 2017, although output registered a 3.1% growth. Zinc supply deficit was 236,000 tonnes in 2016. Zinc inventories declined 93,000 tonnes in April.

LME zinc inventories fell 23,000 tonnes in April, and decreased 80,000 tonnes from the end of 2016. LME zinc inventories fell to a 9-year low of 311,925 tonnes. Meanwhile, SHFE zinc inventories remained at an 8-year low as of June 16, despite a rise to 71,758 tonnes. Spot premiums shrank in Shanghai, Tianjin and Guangdong markets on June 20, narrowing 20-50 yuan per tonne and 100 yuan per tonne, respectively, in Shanghai and Guangdong. Zinc smelters in Shanghai sold proactively since zinc prices continue rising.

Technically market is under short covering as market has witnessed drop in open interest by -0.2% to settled at 5403 while prices up 0.25 rupees, now Zinc is getting support at 173.7 and below same could see a test of 172.8 level, And resistance is now likely to be seen at 175.9, a move above could see prices testing 177.2.

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
SHARE

Suhani Verma

  • Image
  • Image
  • Image
    Blogger Comment
    Facebook Comment

0 comments: