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Monday, December 6, 2021

MCX Zinc likely to trade in a range between 192.5-203.5

MCX Copper may trade in a range between 452.1-471.9

MCX Nickel may trade between 896.3-982.1 levels

MCX Aluminium under fresh buying; Support seen at 157.7

MCX Mentha Oil likely to trade in a range of 1639.2-1677.6

Short covering seen in MCX Cotton

Technically now Zinc is getting support at 196.1 and below same could see a test of 192.5 levels and resistance is now likely to be seen at 201.6, a move above could see prices testing 203.5.

Zinc on MCX settled up 1.29% at 199.65 on falling stockpiles and rising Chinese premiums, but gains were capped by signs that growth in top metals consumer China is cooling.

Zinc inventories in Shanghai Futures Exchange warehouses are at more than decade lows and premiums – or surcharges for physical metal – in Shanghai of above $200 a tonne have hit their highest since November 2013.

Refined zinc production in China has been low because of the smelter cuts. China’s hopes of negotiating a free trade pact with Canada or Mexico were dealt a sharp setback by a provision deep in the new U.S.-Mexico-Canada trade agreement that aims to forbid such deals with “non-market” countries. 

Federal Reserve Chairman Jerome Powell hailed a “remarkably positive outlook” for the U.S. economy that he feels is on the verge of a “historically rare” era of ultra-low unemployment and tame prices for the foreseeable future.

Mitsui Mining and Smelting Co Ltd , Japan’s biggest zinc smelter, plans to produce 114,600 tonnes of refined zinc during October-March in the 2018/19 financial year, it said, up 3.6 percent from the same period a year earlier.

Following are details of the company’s output plan, with comparisons against planned production in the first half of the 2018/19 year and actual production in the second half of 2017/18. Factory activity in Asia weakened in September, with many trade- reliant economies seeing a slump in export orders in a sign that escalating U.S.-China tensions are taking a toll on business confidence.

Trading Ideas:
–Zinc trading range for the day is 192.5-203.5.
–Zinc gained on falling stockpiles and rising Chinese premiums, but gains were capped by signs that growth in top metals consumer China is cooling.
–Zinc inventories in SHFE warehouses are at more than decade lows and premiums above $200 a tonne have hit their highest since November 2013.
–Refined zinc production in China has been low because of the smelter cuts.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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