BUY ZINC MCX TIPS TODAY CMP 220.50—219.50 TARGET 222 — 224 SL PAID. MCX zinc yesterday settled down by 2.63% at 216.35 amid profit booking as dollar seen supported due to continued concerns over the timing of more U.S. economic stimulus.
The meeting of the European Central Bank announced that the emergency bond purchase program has increased 500 billion euros and extended for 9 months, and will also provide new long-term loans to commercial banks to release liquidity again.
Domestic zinc smelters will conduct maintenance as scheduled in December as zinc concentrate supply remained tight, and this will support zinc prices.China’s refined zinc output stood at 562,300 mt in November, falling 6,800 mt or down 1.22% on month and up 5.94% on year.
For January-November, output totalled 5.55 million mt, up 4.57% from the same period last year. Zinc smelters produced 81,800 mt of zinc alloy in November, flat from the previous month. China’s refined zinc output in November basically met expectations.
Treatment charges (TCs) for domestic 50 grade zinc concentrate continued to decline in November. Smelters’ profits decreased, and refineries with reduced production were mainly concentrated in Sichuan, Shaanxi and Yunnan.Refineries in Gansu and Yunnan had sufficient supply of raw materials, and the annual production plan was completed at the end of the year, so they were in a full capacity in November.
