Technically Zinc market is under fresh buying as market has witnessed gain in open interest by 11.01% to settled at 1250 while prices up 3.65 rupees.
Now MCX Zinc is getting support at 282 and below same could see a test of 276.8 levels, and resistance is now likely to be seen at 290.6, a move above could see prices testing 294.
Zinc yesterday settled up by 1.29% at 287.05 as the social zinc ingot inventories across seven major markets in China totalled 143,600 mt, down 3,700 mt on the week.
Which was mainly contributed by Tianjin and Guangdong.There is still no signs as of when the zinc inventory will come to a pivot.
On the macro front, the US disclosed its GDP reading with the lowest growth rate since the economy recovered from the COVID, indicating slowing economic development in Q3 amid supply chain disruptions and resurging COVID cases which suppressed expenditures and investments.
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.
U.S. consumer spending increased solidly in September, but was partly flattered by higher prices as inflation remained hot amid shortages of motor vehicles and other goods in the face of global supply constraints.
Trading Ideas:
–Zinc trading range for the day is 276.8-294.
–Zinc prices rose as the social zinc ingot inventories across seven major markets in China totalled 143,600 mt, down 3,700 mt.
–There is still no signs as of when the zinc inventory will come to a pivot.
–On the macro front, the US disclosed its GDP reading with the lowest growth rate since the economy recovered from the COVID.
Courtesy: Kedia Commodities
Source: Comodity Online
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