Zinc settled down by -1.15% at 184.2 as investors cut bets on higher prices due to growing doubts that this month's sizzling rally was built on solid fundamentals. China's environmental protection affected operating rates at mines in Yunnan, Guangxi and Hunan. Mines in North China, including Inner Mongolia were forced to cease production in the winter season. China's zinc concentrate output was 3.84 million tonnes in the first ten months of the year, down 0.12% year-on-year. So this year will unlikely see output growth even if output picked up in the rest two months of the year. China's refined zinc imports were 477,400 tonnes during January and October, a drop of 3.94% year-on- year. Inflows of imported zinc were very scarce in the fourth quarter as import window remains closed. total zinc inventories in Shanghai, Tianjin and Guangdong fell 15,300 to 225,200 tonnes as of Friday. Inventories in Guangdong grew slightly, and those in the other two regions both fell. Global zinc market has recorded small surplus during January to September of this year. It must be noted that the zinc market had ended in surplus in the whole of 2015, as per the latest figures from the World Bureau of Metal Statistics. The global zinc market recorded marginal surplus of 54 kt during the initial nine months of the year from January to September. It should be noted that the worldwide zinc market had reported a surplus of 100 kt during the entire year 2015. Technically market is under fresh selling as market has witnessed gain in open interest by 16.83% to settled at 7329, now Zinc is getting support at 181.5 and below same could see a test of 178.8 level, And resistance is now likely to be seen at 188.1, a move above could see prices testing 192.

Trading Ideas:

Zinc trading range for the day is 178.8-192.

Zinc dropped as investors cut bets on higher prices due to growing doubts that this month's sizzling rally was built on solid fundamentals.

China's refined zinc imports were 477,400 tonnes during January and October, a drop of 3.94% year-on-year.

Global zinc market has recorded small surplus during January to September of this year.