Zinc settled up 1.27% at 135.20 despite a 12% decline in monthly China’s imports in May, support seen as tightening LME inventories remained the key support for the base metal. LME stockpiles plunged 36.75% year-to-date. Also support seen after the update that Zinc production fell 6.6% to 112,528 mt due to a drop in output at Antamina and mine closures by Buenaventura and San Ignacio de Morococha, while lead gained 3.1% to 23,575 mt on gains at Votorantim Metais unit Milpo and the startup of Trevali Mining's Santander mine, according to the ministry. Last week's jobs report showed June non-farm employment increased by 288,000, more than the forecast 214,000, while the unemployment rate dropped by
0.2 percentage points to 6.1 percent and average hourly earnings increased by 0.2 percent. The data agenda is light today. German industrial production for May fell 1.8 percent, significantly below an expected 0.3-percent increase, but EU Sentix investor confidence at 10.1 beat expectations for a fall to 7.5 from 8.5 previously. The week ahead is also light on data but the US quarterly corporate earnings season kicks off, while the FOMC minutes for its June policy meeting will be released on Wednesday. Thursday sees monetary policy meetings by the UK's BoE and the ECB. There are growing expectations that the US Federal Reserve will raise the federal funds rate, which it has held at 0-0.25 percent for five-and-a-half-years, earlier than previously projected on growing optimism about an economic recovery. Technically market is under fresh buying and getting support at 133.4 and below same could see a test of 131.5 level, And resistance is now likely to be seen at 136.3, a move above could see prices testing 137.3.

Zinc trading range for the day is 131.5-137.3.

Zinc settled up as support seen as tightening LME inventories remained the key support for the base metal.

Support seen after the update that Zinc production fell 6.6% to 112,528 mt due to a drop in output at Antamina.

Week ahead is also light on data but the US quarterly corporate earnings season kicks off, while the FOMC minutes will be released on Wednesday.

Warehouse stock for Zinc at LME was at 663650mt that is down by -1000mt.

BUY ZINC JULY @ 133.50 SL 132.20 TGT 134.50-136.MCX