Zinc On MCX Settled Up 1.66% - Ways2Capital

Zinc on MCX settled up 1.66% at 177.55 benefited from a decline in exchange stockpiles. Chinese iron ore prices surged 6 percent to one-month highs in a late burst of short covering and fresh buying that lifted steel and raw materials as investors bet on rising demand. Cancelled warrants -- zinc earmarked for delivery --at more than 70 percent of LME stocks at 299,875 tonnes are fuelling concern of a tight LME market.

Total stocks at eight-year lows are also down 35 percent since October. Premiums for zinc held in China's bonded zones are near their highest levels this year at $195-$200 from about $130 earlier this year. The discount for cash over the three-month contract has narrowed to near zero from around $20 a tonne on June 12, another sign of a tighter LME market. 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.

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 -6.27% to settled at 5064 while prices up 2.9 rupees, now Zinc is getting support at 175.5 and below same could see a test of 173.5 level, And resistance is now likely to be seen at 178.6, a move above could see prices testing 179.7.

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: