Copper market under fresh selling; Support seen at 427.3
Natural Gas market under short covering; Support seen at 299.8
MCX Crude Oil may trade in a range between 3436-3900
MCX Nickel under long liquidation; Resistance seen at 771.6
Long liquidation seen in MCX Aluminium; Support seen at 135.8
Technically Zinc market is under fresh selling as market has witnessed gain in open interest by 0.66% to settle at 2582.
Now MCX Zinc is getting support at 179.8 and below same could see a test of 177.5 levels and resistance is now likely to be seen at 185.1, a move above could see prices testing 188.1.
Zinc on MCX settled down 3.06% at 181.95 as pressure continues on an expected surge in refined zinc output after a clutch of new mine openings has been derailed by bottlenecks at smelters across Asia, putting the brakes on an eye-watering price fall.
Benchmark zinc tumbled over 35 percent in the seven months to mid-September, with prices of the metal used mainly to rustproof steel also hurt by concerns of a global economic slowdown. Prices are still down about 20 percent so far this year, but are expected to be underpinned in coming months by issues that have cut refining capacity in China, India, South Korea and Australia.
China’s forced environmental cutbacks on zinc slag, or waste from the zinc smelting process, and falling refined prices in the second quarter, prompted many smelters to cut production.
The extent of the backlog at smelters in China – which accounts for roughly half of global zinc production – is reflected in a seven-fold surge over the past two months in the charges levied by the smelters to refine ore into metal.
These so-called treatment charges (TCs) have rallied from around $20 per tonne of concentrate for the first nine months of 2018 to more than $145 currently, the highest in two years. The higher treatment fees have led to a pick-up in refined output in China lately, with October’s 501,000 tonnes the highest monthly total this year and nearly 10 percent above September’s tally.
Trading Ideas:
–Zinc trading range for the day is 177.5-188.1.
–Zinc prices dropped as pressure continues on an expected surge in refined zinc output.
–China’s forced environmental cutbacks on zinc slag, or waste from the zinc smelting process, prompted many smelters to cut production.
–Zinc ingot stocks across Shanghai bonded areas expanded 3,000 mt from a week ago to 40,000 mt as of Friday November 23, data showed.
Courtesy: Kedia Commodities
Source: Commodityonline.com
