Zinc yesterday traded with the positive node and settled 0.1% up at 101.90 tracking LME zinc prices last Friday opened at $1,861/mt. Due to China's worse-than-expected import and export data, and since trade surplus for July narrowed to $25.147 billion, LME zinc prices were pushed down to $1,845/mt. LME zinc prices moved steadily between $1,840-1,850/mt and climbed as the US dollar index plunged, and finally closed at $1,837/mt, down $22/mt or 1.18%. Weak trade data from China stoked market concern over metal demand, and fueled fear that China may fail to meet import and export growth target of 10%. The negative impact from China’s weak trade data outweighed higher imports of unwrought copper and copper in July on a monthly basis. Market widely expected that the growth in imports of copper and unwrought copper was attributed to fixed-contract supply and finance-driven transaction rather than real recovery of downstream demand. Coupled with strong movement of the US dollar, base metal prices fell across the board, with LME prices falling. The ECB announced to conditionally interfere in market in order to mitigate the sovereign debt crisis, preventing euro from falling further. Investors are cautious after release of pessimistic news from major economies. For today's session market is looking to take support at 101.8, a break below could see a test of 101.7 and where as resistance is now likely to be seen at 102, a move above could see prices testing 102.1.
Zinc trading range for the day is 101.67-102.07.
Zinc ended with flat node due to China's worse-than-expected import and export data
Weak trade data from China stoked market concern over metal demand
Zinc weekly stocks at Shanghai exchange came down by 1371 tonnes
- Decision on gas price revision taken under RIL’s coercion: Dasgupta
- Government to pay $8.1 billion fuel subsidy in fourth quarter
- Oil firms falls as government considers export parity pricing model
- Essar Oil to sign $1 billion financing co-operation deal with CDB
- ONGC may sell stakes in deep-water blocks to Shell