Commodity Trading Tips for Zinc by Kedia Commodity

Zinc on MCX settled down -0.29% at 191.45 as funds cut bets on higher prices ahead of minutes from the Federal Reserve's last meeting and a stronger dollar. Europe’s largest zinc producer Nyrstar is considering restarting its idled and for sale Myra Falls zinc-copper mine in light of improved market conditions. Small-to-mid-sized zinc mining companies are taking advantage of soaring zinc prices and rock-bottom treatment charges (TCs) by targeting increased production in 2017 to capture a continuing bull market for the metal. The zinc market is slated for a substantial 250,000 tonne deficit this year, according to the International Lead and Zinc Study Group (ILZSG), on the back of the continued absence of Glencore’s major mine since 2015. The effect of this is favourable conditions for smaller zinc mines to ramp up. WBMS data showed that Zinc markets record slight deficits in 2016. Meanwhile the worldwide zinc market has recorded deficit during January to December last year. It must be noted that the zinc market had ended in surplus in the whole of 2015. As per WBMS data, the global zinc market recorded deficit of 177 kt during the full twelve-month period of 2016 from January to November. It should be noted that the worldwide zinc market had reported a surplus of 100 kt during the entire year 2015. Global refined zinc production witnessed decline of 2.2% during 2016. Technically market is under long liquidation as market has witnessed drop in open interest by -7.3% to settled at 5626 while prices down -0.55 rupees, now Zinc is getting support at 189.6 and below same could see a test of 187.7 level, And resistance is now likely to be seen at 193.4, a move above could see prices testing 195.3.

Trading Ideas:

# Zinc trading range for the day is 187.7-195.3.

# Zinc dropped as funds cut bets on higher prices ahead of minutes from the Federal Reserve's last meeting and a stronger dollar.

# Europe’s largest zinc producer Nyrstar is considering restarting its idled and for sale Myra Falls zinc-copper mine in light of improved market conditions

# Zinc daily stocks at Shanghai exchange came down by 2961 tonnes.