Zinc on MCX settled up 0.16% at 187.95 as ongoing strikes in Canada added to supply worries. However cargo holders stepped up supplies against cash tightness, adding to supplies and weighing on zinc. Zinc has gained 10 percent this year on concerns that the closure and suspensions of big mines will create shortages. Also support can be seen as Korea Zinc Inc said this month it plans to cut its refined zinc production by 7.7 per cent to just under 600,0000 tonnes this year due to low mine supply and reduced treatment charges. Also a strike at Noranda Income Fund's zinc processing plant in Quebec stretched into a 13th day on Friday, with no talks scheduled between management and the union, which will also cut metal supply. Meanwhile Global zinc stocks across the LME, China and the United States are now at their smallest since 2009 on a seasonal basis. Available LME zinc stocks tipped below 200,000 tonnes last week for the first time since 2008, having halved over the past four months. Outside of China mine supply of zinc fell by 10 percent last year, according to the International Lead and Zinc Study Group (ILZSG). That sharp contraction followed four years of mild decline or, at best, flattish growth. That's how long zinc's bull story has been running but it's only now that the accumulating pressures in the mined concentrates part of the supply chain are working their way into the refined metal market. Technically market is under fresh buying as market has witnessed gain in open interest by 58.67% to settled at 5839, now Zinc is getting support at 187 and below same could see a test of 186.1 level, And resistance is now likely to be seen at 189, a move above could see prices testing 190.1.

Trading Ideas:

# Zinc trading range for the day is 186.1-190.1.

# Zinc prices gained as ongoing strikes in Canada added to supply worries.

# However cargo holders stepped up supplies against cash tightness, adding to supplies and weighing on zinc.

# Activity in China's manufacturing sector expanded faster than expected in February, an official survey showed.