Gold Silver Reports — Zinc on MCX settled up 0.47% at 138.10 gained tracking LME Zinc prices which has surged as much as 25 percent in 2016 to the highest since July as miners supply less of the ore concentrate that’s refined to produce the metal, just as demand rebounds in China, the biggest user.
LME zinc rose 0.4 percent to $2,069.5 a tonne after hitting a 10-month high of $2,105.50, it has emerged as the best performing metal this year. While prices rose near to 140 per kg their highest level in almost 10 months as the Chinese smelters that churn out more than 40 per cent of the world’s zinc may cut production for the first time in four years because they can’t get enough raw material, further lifting prices of one of this year’s strongest-performing commodities.
Last year too, Investors have been drawn in by a narrative of mine closures and a resulting tightening of the raw materials supply chain. There have been plenty of false scarce in the market but this is the year that it really seems to be happening. Yesterday Chinese trade data suggested the country imported commodities in relatively large quantities last month. As the world’s biggest user of raw materials, evidence of slowing demand last year had sent prices tumbling.
The ECB, meanwhile, began buying debt of some of the continent’s biggest companies in its efforts to stimulate a flagging economy. Some support seen in Metals amid mounting speculation the US Federal Reserve will hold off raising interest rates until later in the year. Technically market is getting support at 135 and below same could see a test of 132 level, And resistance is now likely to be seen at 141, a move above could see prices testing 144. — Neal Bhai Reports