Global zinc supplies will continue to outpace demand growth into 2011 and prices will fall to reflect this at some point. Zinc yesterday we have seen that market has moved 2%. Market has opened at 103.05 & made a low of 103.05 versus the day high of 105.7. The total volume for the day was at 28087 lots and the open interest was at 6808.Now support for the zinc is seen at 103.2 and below could see a test of 101.8. Resistance is now likely to be seen at 105.9, a move above could see prices testing 107.1.

Trading Ideas:

Zinc trading range is 101.8-107.1.

Global zinc supplies will continue to outpace demand growth into 2011

Zinc looks to take support at 103.20 and resistance at 105.90.

Zinc daily stocks at Shanghai exchange came up by 3266 tonnes.