Zinc settled up 2.03% at 143.10 advanced after Glencore, the world’s second largest zinc producer, said it expects zinc markets to tighten. Zinc was also supported after WBMS estimated that zinc markets moved from a surplus of 116kt in 2013 to a deficit of 191kt in 1H14. Also the Fed confirmed tapering of QE3, pushing down the euro and driving up the US dollar index. But base metals market was little affected. LME zinc prices opened at USD 2,304/mt overnight, rising to as high as USD 2,361/mt and closing at USD 2,358/mt, up USD 47.25/mt or 2.04%. Overnight, basemetals rallied despite after the Fed's July policy meeting minutes revealed that rate hikes could come sooner rather than later if the job market continues to improve. The Fed said that the overall economy is improving, though slackness remains in the labor market despite growth, which prompted monetary authorities to continue tapering its asset-purchasing program by only $10 billion per policy meeting. The Fed's stimulus bond-buying program is seen concluding around October, and rate hikes are expected in 2015, though the timing of the latter remains up in the air. While some monetary authorities favored studying more data before deciding, others felt action should come sooner rather than later. "Many participants noted that if convergence toward the Committee's objectives occurred more quickly than expected, it might become appropriate to begin removing monetary policy accommodation sooner than they currently anticipated," the minutes released earlier Wednesday read. Technically market is under fresh buying as market has witnessed gain in open interest by 8.15% to settled at 5255, now Zinc is getting support at 141.4 and below same could see a test of 139.5 level, And resistance is now likely to be seen at 144.2, a move above could see prices testing 145.1.

Trading Ideas:

Zinc trading range for the day is 139.5-145.1.

Zinc ended with gains as a jump in home building fueled speculation that demand will accelerate in the U.S.

Demand for zinc topped output by 191,000 tons, after a surplus of 116,000 tons for 2013.

Zinc daily stocks at Shanghai exchange came down by 399 tonnes.