Commodity Trading Tips for Zinc by KediaCommodity
Zinc settled up 1.22% at 124.85 rebounding from the longest losing streak in 25 years, on speculation that strengthening demand in China will curb supplies. Mitsui Mining & Smelting Co., Japan's top zinc producer, raised annual charges to overseas buyers by as much as 70 percent amid rising Chinese consumption, compared with a 15 percent gain last year. China's imports of zinc concentrate climbed 24 percent in December from a year earlier, customs data show. A global production deficit will widen this year to 120,000 metric tons, from 20,000 tons in 2013, Morgan Stanley said in a Jan. 22 report, forecasting a 10 percent gain in the average cash price. Zinc stockpiles at warehouses monitored by the London Metal Exchange shrank 30 percent the past 12 months. The European Central Bank (ECB) and Bank of England (BOE) both kept their monetary policies unchanged on Thursday. The euro, however, rose sharply, benefiting from comments by the ECB in its press conference. The BOE's decision to maintain its interest rate matched forecasts, but that of the ECB stoked controversies in markets. Markets have high expectations that the ECB will take some measures since the euro zone's inflation continued to decline and its unemployment remained lofty. In its subsequent press conference, the ECB just announced as usual that it would stand ready to take some measures to cope with inflation. Technically market is under fresh buying as market has witnessed gain in open interest by 23.82% to settled at 2552 while prices up 1.5 rupee, now Zinc is getting support at 123.5 and below same could see a test of 122.2 level, And resistance is now likely to be seen at 125.6, a move above could see prices testing 126.4.
Trading Ideas:
Zinc trading range for the day is 122.2-126.4.
Zinc gained on the back of speculation that growing Chinese zinc demand will reduce supply of the metal.
China's imports of zinc concentrate climbed 24 percent in December from a year earlier, customs data show.
A global production deficit will widen this year to 120,000 metric tons, from 20,000 tons in 2013.