Technically Zinc market is under fresh selling as market has witnessed gain in open interest by 2.21% to settled at 1016 while prices down 2.3 rupees.
Now MCX Zinc is getting support at 280 and below same could see a test of 276.9 levels, and resistance is now likely to be seen at 286.6, a move above could see prices testing 290.1.
Zinc yesterday settled down by 0.81% at 282.9 as the SHFE and LME inventories both climbed, and the domestic consumption has been sluggish.
The goods holders were active in selling, while the downstream long-term contracts were mostly made on rigid demand.The global zinc market deficit declined to 14,900 tonnes in August from a revised deficit of 40,400 tonnes in July, data from the International Lead and Zinc Study Group (ILZSG) showed.
Previously, the ILZSG had reported a deficit of 6,600 tonnes in July.During the first eight months of 2021, the ILZSG data showed a deficit of 57,000 tonnes versus a surplus of 446,000 tonnes in the same period of 2020. Around 13.5 million tonnes of zinc are produced and consumed each year.
On the macro front, the National Development and Reform Commission has issued relative documents to contain coal prices for 7 days in a row, suppressing long sentiment in the market.
Sales of new U.S. single-family homes surged to a six-month high in September, but higher house price are making homeownership less affordable for some first-time buyers.New home sales jumped 14.0% to a seasonally adjusted annual rate of 800,000 units last month, the highest level since March, the Commerce Department said.
–Zinc trading range for the day is 276.9-290.1.
–Zinc remained under pressure as the SHFE and LME inventories both climbed, and the domestic consumption has been sluggish.
–Global zinc market deficit falls to 14,900 T in August, ILZSG says.
–During the first eight months of 2021, data showed a deficit of 57,000 tonnes versus a surplus of 446,000 tonnes in the same period of 2020.
Courtesy: Kedia Commodities
Source: Comodity Online