MCX Zinc settled down 0.57% at 183.1 as deliveries to LME-approved warehouses lifted LME zinc inventories for two consecutive days, but the stocks are unlikely to further grow.
Pressure also seen under pressure on concerns about global economic growth and the robust greenback after the Fed gave an uncertain outlook on future easing. The global zinc market swung into a 4,200 tonne deficit in July from a revised surplus of 13,800 tonnes in June, data from the International Lead and Zinc Study Group (ILZSG) showed.
During the first seven months of the year, the global deficit fell to 106,000 tonnes from 170,000 tonnes in the same period last year.
China’s zinc output rose 18.9% from a year earlier to 528,000 mt in August, the highest monthly production since December 2017, data released by the National Bureau of Statistics showed. In the first eight months of 2019, zinc output in China reached 4.03 million mt, up 8.2% from the same period last year.
Social inventories of refined zinc across Shanghai, Tianjin and Guangdong increased by 5,400 mt from Thursday September 12 to 147,000 mt as of Monday September 16, showed data.
The stocks rose 1,500 mt from a week earlier. US homebuilding surged to more than a 12-year high in August as both single- and multi-family housing construction increased, suggesting that lower mortgage rates were finally providing a boost to the struggling housing market.