Zinc yesterday traded with the negative node and settled -2.18% down at 96.3 LME zinc prices overnight continued to fluctuate below USD 2,200/mt during the Asian trading hours. According to US data overnight, the manufacturing index during May in central Atlantic coast of the US was 3.9, compared to the forecast of 20, and new home sales fell by 0.8%, also lower than estimates. In this context, LME zinc prices overnight plummeted to USD 2,134/mt at the end of trading, with prices closing at USD 2,149/mt, down USD 42/mt. Trading volumes increased by 734 lots to 237,429 lots, and total positions decreased by 450 lots to 852,125 lots. SHFE 1107 zinc contract prices are expected to fluctuate between RMB 16,400-16,800/mt today. In yesterday's trading session zinc has touched the low of 95.3 after opening at 98.5, and finally settled at 96.3. For today's session market is looking to take support at 94.8, a break below could see a test of 93.4 and where as resistance is now likely to be seen at 98.2, a move above could see prices testing 100.2.

Trading Ideas:

Zinc trading range is 93.4-100.2.

Global zinc market in 166,000-ton surplus Jan-March - WBMS

Zinc looks to take support at 94.80 and resistance at 98.20.

Zinc daily stocks at Shanghai exchange came down by 1322 tonnes.