MCX Nickel may trade between 806.5-864.5 levels
MCX Aluminium under fresh selling; Support seen at 141.7
Copper market under fresh selling; Support seen at 428
MCX Menthol Oil under short covering
Natural Gas market under fresh buying; Support seen at 262
Technically Zinc market is under long liquidation as market has witnessed drop in open interest by 4.98% to settled at 3416.
Now MCX Zinc is getting support at 183.3 and below same could see a test of 181.2 levels and resistance is now likely to be seen at 187.4, a move above could see prices testing 189.4.
Zinc prices dropped on expectations that a supply crunch will ease. Smelter margins in China are picking up and the expectation is that production is set to trend higher into year-end.
The premium for cash zinc over the three-month contract at $47.50 has eased from highs around $60 in late October, but signals that shortages of nearby supply remain.
The roughly 13.5 million tonne global zinc market had a deficit of 292,000 tonnes in the first eight months of the year, the International Lead and Zinc Study Group (ILZSG) said. Social inventories of refined zinc across Shanghai, Guangdong and Tianjin came in at 122,300 mt as of Friday November 9, down 13,600 mt from Monday November 5 and 18,700 mt from Friday November 2, data showed.
Between November 5 and November 9, stocks in Shanghai shrank some 11.3% as a closed import arbitrage window limited seaborne materials entering the domestic market. Shanghai also saw fewer arrivals of domestic materials as dips in zinc prices discouraged smelters from offloading.
Output of refined zinc in China stood at 459,300 mt in October, up 2.81% from a month earlier but down 8.29% from a year earlier. This brought the output in January-October to 4.426 million mt, standing 8.29% lower than the same period last year.
Treatment charges (TCs) for zinc concentrate extended their gains in October as inflows of seaborne materials ensured adequate supplies in China’s zinc concentrate market.
Trading Ideas:
–Zinc trading range for the day is 181.2-189.4.
–Zinc prices dropped on expectations that a supply crunch will ease.
–Smelter margins in China are picking up and the expectation is that production is set to trend higher into year-end.
–The roughly 13.5 million tonne global zinc market had a deficit of 292,000 tonnes in the first eight months of the year, ILZSG said.
Courtesy: Kedia Commodities
Source: Commodityonline.com
