Copper market under short covering; Support seen at 456.6
MCX Nickel likely to move in a range of 915.1-957.3
MCX Aluminium may trade between 148.6-152.4
MCX Menthol Oil under long liquidation; Support seen at 1677.5
MCX Cotton under short covering; Support seen at 22526.6
Technically Zinc market is under fresh buying as market has witnessed gain in open interest by 12.52% to settled at 5436, now Zinc is getting support at 195.8 and below same could see a test of 193.8 level, And resistance is now likely to be seen at 199.7, a move above could see prices testing 201.6.
Zinc on MCX settled up 0.71% at 197.7 on shrinking inventories and smelter cuts in China despite of trade and inflation worries. Production cutbacks at China’s zinc smelters in response to tighter environmental checks and weaker profits have tightened supply.
Demand for refined zinc will exceed supply by 322,000 tonnes this year, but the gap will narrow to 72,000 tonnes in 2019, industry data showed. Resumption from maintenance raised output of refined zinc across Chinese smelters to 446,700 mt in September, up 6.7% from August, but down 5.46% from a year ago.
Total output in the first nine months of the year fell 0.07% from 2017 and stood at 3.97 million mt. Last month, smelters in Inner Mongolia returned to operation after maintenance, with only Western Mining in Qinghai province under routine overhaul.
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Concentrate treatment charges (TCs) gained significantly as imports grew supplies and domestic mines operated as usual. Higher TCs, together with higher prices of zinc in September buoyed profit margins across smelters. Output of refined zinc is expected to grow 11,700 mt, or 2.62% from September to stand at 458,400 mt in October. This will be down 8.46% from a year ago.
Year-to-date output through October is likely to decrease 1.01% on the year. Production will recover at Western Mining this month, with output extending gains at Baiyin Nonferrous Metals and Luoping Zinc & Electricity. Production cuts at Hanzhong Zinc and maintenance at Henan Yuguang Zinc will affect overall output.
Trading Ideas:
–Zinc trading range for the day is 193.8-201.6.
–Zinc prices remained supported on shrinking inventories and smelter cuts in China despite of trade and inflation worries.
–Demand for refined zinc will exceed supply by 322,000 tonnes this year, but the gap will narrow to 72,000 tonnes in 2019, industry data showed.
–Resumption from maintenance raised output of refined zinc across Chinese smelters to 446,700 mt in September, up 6.7% from August.
Courtesy: Kedia Commodities
Source: Commodityonline.com
