Technically Zinc market is under fresh selling as market has witnessed gain in open interest by 8.67% to settled at 1329 while prices down 3.25 rupees.
Now MCX Zinc is getting support at 272.2 and below same could see a test of 270 levels, and resistance is now likely to be seen at 278.2, a move above could see prices testing 282.
Zinc yesterday settled down by 1.17% at 274.2 as the demand from end-users was less than expected after zinc prices fell and some producers were inclined to reduce the orders from customers with debts approaching the end of this year.
Miner and commodity trader Glencore will put its zinc sulphide operation in Portovesme, Italy, on care and maintenance until there is “a meaningful change in power market prices”, the company said.
The plant, which has capacity of 100,000 tonnes a year, will enter care and maintenance by the end of December at the latest. Global zinc production is estimated at about 14 million tonnes this year, with about half of that expected to come from China, the world’s largest producer.
The premium of LME cash zinc over the three-month contract rose to $52.80 a tonne, its highest since Oct. 29, indicating tightening nearby supplies as LME inventories of the metal fell to the lowest since July 2020 to 175,025 tonnes.
The global zinc market deficit widened to 44,000 tonnes in September from a downwardly revised shortfall of 14,000 tonnes in August, data from the International Lead and Zinc Study Group (ILZSG) showed.
Previously, the ILZSG had reported a deficit of 14,900 tonnes in August. During the first nine months of 2021, ILZSG data showed a deficit of 93,000 tonnes versus a surplus of 457,000 tonnes in the same period of 2020.
Trading Ideas:
–Zinc trading range for the day is 270-282.
–Zinc dropped as the demand from end-users was less than expected after zinc prices fell.
–Glencore’s Portovesme zinc operation to enter care and maintenance.
–Global zinc production is estimated at about 14 million tonnes this year, with about half of that expected to come from China.
Courtesy: Kedia Commodities
Source: Comodity Online
