Gold Silver Reports — Zinc MCX Intraday; Support Zone at 178 — Technically Zinc market is under short covering as market has witnessed drop in open interest by 7.73% to settled at 3891 while prices up 3.2 rupees.
Now MCX Zinc is getting support at 178 and below same could see a test of 175.1 level, And resistance is now likely to be seen at 185, a move above could see prices testing 189.3.
Zinc on MCX settled up 1.78% at 182.8 as prices regains to end with gains as some investors refocused on Trump’s promised tax reforms and strong economic data. China’s central bank said it would provide financial support to help manufacturers upgrade and modernize, including measures to increase the scope for insurance companies to invest in the manufacturing sector.
The market focus is on New Orleans, warehouses’ on-warrant stocks have dropped to 183,800 tonnes after a further 21,300 tonnes of cancellations or metal earmarked for delivery. On-warrant zinc stocks — metal available to the market — have fallen 42 percent this year to the lowest levels since November 2008.
Noranda Income Fund said that zinc production at a Quebec plant, which was hit by a strike, was at 50-60 percent of normal operating levels. The company said in February that the plant’s 371 unionized workers, represented by the United Steelworkers of America, walked off the job after the two sides failed to agree on changes to a proposed pension plan in a new collective bargaining agreement.
Zinc concentrate TCs in Central West China and some other regions were still low between 3,600-3,800 yuan per tonne (zinc content) with benchmark price at 15,000 yuan per tonne. Zinc smelters in Central West China agreed to slash output in the near term at a seminar. — Neal Bhai Reports