Zinc prices likely to be under pressure as vast inventories of zinc likely to weigh on that market though as it remains in supply surplus. Last Friday, the US dollar index continued to rebound, with the index generally moving around 74 during the day, and even rising to 74.8 during the night. In this context, LME zinc prices moved between USD 2,120-2,130/mt in the morning session during the Asian trading hours, and fell to USD 2,048 in the midday. In the evening, the US Department of Labor released that the number of non-farm employment for April increased by 244,000, and the private sector added 268,000 jobs during April, the largest increase since 2006. In this context, LME zinc prices overnight rallied to close at USD 2,145/mt, up USD 29/mt.  Now support for the zinc is seen at 96.3 and below could see a test of 95.8. Resistance is now likely to be seen at 97.5, a move above could see prices testing 98.2.

Trading Ideas:

Zinc trading range is 95.8-98.2.

Zinc prices likely to be under pressure as vast inventories of zinc likely to weigh

Zinc looks to take support at 95.20 and resistance at 98.20 level

Zinc weekly stocks at Shanghai exchange came up by 902 tonnes.