MCX Aluminium under fresh selling; Support seen at 144.8
MCX Nickel under short covering; Resistance seen at 850.5
MCX Copper under fresh selling; Support seen at 418
MCX Natural Gas likely to move in a range of 179.3-187.9
MCX Crude Palm Oil under fresh buying; Support seen at 4383
Technically Zinc market is under fresh buying as market has witnessed gain in open interest by 1.41% to settled at 3317.
Now MCX Zinc is getting support at 212.7 and below same could see a test of 211.4 level, And resistance is now likely to be seen at 214.8, a move above could see prices testing 215.6.
Zinc on MCX settled up 0.49% at 213.75 as prices recovered on short covering after prices dropped as investors fretted about rising supplies from top producer China.Further upside also seen limited from trade tensions between the United States and China.
China’s zinc production to climb around 5% in May from April to above 560,000 tonnes. Higher numbers are expected in the second half as new capacity ramps up.
A survey published earlier in May shows analysts on average expect a surplus of 20,000 tonnes this year after years of deficits, in a market estimated around 14 million tonnes.
Speculative positioning in zinc as of last week shifted from flat to a net short of 2.1% of open interest or 3,300 lots.
However, low stocks of zinc in LME-approved warehouses, at 104,850 tonnes from above 250,000 tonnes in August last year, and large holdings of LME warrants are fuelling nervousness about shortages on the LME market.
This can be seen in the premium or backwardation for the cash over the three-month contract which ended at a 20-year high $150.50 a tonne.
No further trade talks between top Chinese and U.S. negotiators have been scheduled since the last round ended on May 10 – the same day Washington raised the tariff rate on $200 billion worth of Chinese products to 25% from 10%.
Stocks of refined zinc across Shanghai-bonded warehouses extended their increase this week as import losses drove forward cargoes to the bonded stocks, instead of to the domestic markets.
–Zinc trading range for the day is 211.4-215.6.
–Zinc recovered on short covering after prices dropped as investors fretted about rising supplies from top producer China.
–Further upside also seen limited from trade tensions between the United States and China.
–China’s zinc production to climb around 5% in May from April to above 560,000 tonnes.
Courtesy: Kedia Commodities