Neal Bhai Reports — Zinc MCX Expected Trading Zone 146-154 — Zinc on MCX settled up 1.67% at 151.8 as recent economic indicators in China pointed to brighter demand prospects. Zinc has been the best performing LME metal this year as the closure of major mines tightened the concentrates market, though the extent to which this tightness has been priced in is up for debate. LME data shows zinc stocks, currently at 446,675 tonnes, have risen some 18 percent since June.
China’s factory output and retail sales increased faster than expected in August amid strong housing market and government infrastructure spending, data showed. Data showed Chinese banks extended 948.7 billion yuan in net new yuan loans in August, more than double the previous month’s tally, as the central bank keeps policy accommodative to underpin growth. A spike in Chinese zinc concentrate imports in July was likely a one-off. Combined zinc inventories in Shanghai, Tianjin and Guangdong added 2,100 to 295,200 tonnes in the past week. Inventories in both Shanghai and Tianjin increased, while those in Guangdong barely changed, with both arriving and outward shipments steady.
Euro zone employment reached a new post-crisis high in the second quarter of the year, a positive sign for future economic growth, but trade unions said the number of people employed across the currency bloc was still far too low. Employment in the 19 countries that use the euro rose 0.4 percent in the second quarter of 2016 compared with the previous three months, and 1.4 percent from the same quarter a year before, the European Union’s statistics office said. Technically now Zinc is getting support at 149.4 and below same could see a test of 146 level, and resistance is now likely to be seen at 153.5, a move above could see prices testing 154. — Gold Silver Reports