Gold Silver Reports — Zinc on MCX settled up 0.91% at 166.7 tracking rise in LME prices by 0.5 percent at $2,582 despite further losses in steel and iron ore prices. Also zinc consumption softened recently after China strengthened environmental protection actions in Northern regions.
Technically now Zinc MCX is getting support at 164.10 and below same could see a test of 162 level, And resistance is now likely to be seen at 167, a move above could see prices testing 169.10.
The global demand for refined zinc metal is forecast to total 14.30 million tonnes in 2017, marginally higher by 2.6% over the previous year. The demand had witnessed rise of 3.1% in 2016, according to the International Lead and Zinc Study Group (ILZSG).
The refined zinc metal output will rise 2.6% to 14.08 million tonnes in 2017, mainly on the back of rise in output by China and India. Ongoing strike at Valleyfield refinery may badly impact Canadian production. Damages caused by floods may affect production from Cajamarquilla zinc plant in Peru.
Similar decline in refined zinc metal production is anticipated from Thailand and Korea. The global demand for refined zinc metal will exceed supply in 2017, despite sharp rise in zinc mine output. ILZSG forecasts the refined zinc metal to end in deficit of 226,000 tonnes.
Glencore said in its Q1 earnings report its zinc production at self-owned mines rose 9% on a yearly basis to 279,200 tonnes in the first quarter of 2017 due to steady production at Antamina mine. The company has no intention of restarting operation at mines in Australia and Peru any time soon.
US Commerce Department announced the country’s zinc exports took a nosedive in March. Total zinc shipments in the first three months of 2017 were 40,257,646 kg. Technically now Zinc is getting support at 164.7 and below same could see a test of 162.6 level, And resistance is now likely to be seen at 167.9, a move above could see prices testing 169. — Neal Bhai Reports