Zinc settled up 2.21% at 141.25 continued to vacillate near a 35-month high amid low LME inventories. LME stockpiles fell 0.5% last week, adding to a circa 39% decline year-to-date, also support seen after the news that Ukraine rejected to hand over MH17 black box to Malaysia for investigation, which helped ease market concerns and causing crude oil and gold prices to rebound. LME zinc inventory drop and the Century mine scheduled for closure next year bolstered nickel prices to rise. Meanwhile Indonesia has resumed exports of some metal ore concentrates after two companies were given permission to ship iron ore, zinc and lead after they agreed to pay the escalating export tax on the commodity. Indonesia's government has also revealed that there are 76 firms with smelter projects progressed past 6% as of July, up from 66 recorded in January. Indonesia banned unprocessed mineral ore exports and implemented escalating export taxes on metal concentrate to encourage onshore downstream processing. Traders are eyeing US June CPI and housing data will be released today, which are optimistic, when combined with falling LME zinc inventories, zinc prices can move between 142.60 today. Technically market is under fresh buying as market has witnessed gain in open interest by 7.08% to settled at 7061 while prices up 3.05 rupee, now Zinc is getting support at 138.8 and below same could see a test of 136.3 level, And resistance is now likely to be seen at 142.6, a move above could see prices testing 143.9.

Trading Ideas:

Zinc trading range for the day is 136.3-143.9.

Zinc settled up continued to vacillate near a 35-month high amid low LME inventories.

LME zinc inventory drop and the Century mine scheduled for closure next year bolstered prices to rise.

Traders are eyeing US June CPI and housing data will be released, which are optimistic, combined with falling LME zinc inventories