Technically Zinc market is under fresh buying as market has witnessed gain in open interest by 6.14% to settled at 1261 while prices up 3.75 rupees.
Now MCX Zinc is getting support at 254.7 and below same could see a test of 252.5 levels, and resistance is now likely to be seen at 258.2, a move above could see prices testing 259.5.
Zinc yesterday settled up by 1.48% at 256.85 as support seen after Mitsui Mining and Smelting Co Ltd , Japan’s biggest zinc smelter, plans to produce 113,200 tonnes of refined zinc in the second half of the 2021/22 financial year to March 31, down 2.2% year on year, it said.
Toho Zinc Co Ltd, Japan’s third-biggest zinc smelter, plans to produce 47,800 tonnes of refined zinc in the second half of the 2021/22 financial year, up 1.9% from a year earlier, it said.Total zinc inventories across seven Chinese markets stood at 119,800 mt as of September 30, down 11,500 mt from September 27 and 9,400 mt from September 24.
The inventory in Shanghai declined sharply amid increasing pre-holiday restocking by downstream plants.Guangdong saw a decrease in stocks as maintenance at smelters affected the shipments and downstream producers still have pre-holiday restocking demand.
The global zinc market deficit narrowed to 6,600 tonnes in July from a revised deficit of 40,000 tonnes in June, data from the International Lead and Zinc Study Group (ILZSG) showed.
Japan’s industrial output fell for the second straight month in August as COVID-19 outbreaks elsewhere in Asia disrupted supply chains for carmakers already facing headwinds from a prolonged chip shortage.
–Zinc trading range for the day is 252.5-259.5.
–Zinc prices gained as support seen after Japan’s Mitsui Mining expects 2.2% drop in H2 zinc output.
–Japan’s Toho Zinc plans 1.9% increase in H2 zinc output.
–Total zinc inventories across seven Chinese markets stood at 119,800 mt as of September 30, down 11,500 mt from September 27.
Courtesy: Kedia Commodities
Source: Comodity Online