FREE ZINC TIPS : 03.01.2017
Zinc on MCX settled up 0.32% at 173.95 tracking firmness from ShFE zinc was 1 percent higher as investors are positive on China and U.S. demand. Basemetals can see support after solid U.S. economic data gave the Fed the confidence to raise rates for the first time in a year. The central bank signalled three more increases next year from the previous projection of two. Mine closures, tight supplies and expectations of deficits have pushed zinc up in 2016. But stocks in exchange warehouses and elsewhere totalling nearly 2 million tonnes or about seven weeks of usage are potentially negative for zinc, as is the rebalancing of commodity indices in January. China’s zinc smelters are squeezed between severe tightness in concentrate supply and a decline in the growth of demand for zinc metal. The International Lead and Zinc Study Group recently released preliminary data for zinc in 2016, which revealed the global market for the refined metal in deficit from January to October of this year. In the week ahead, investors will be looking ahead to Friday’s U.S. employment report for December along with Wednesday’s minutes of the Fed’s December meeting. While US data on manufacturing and service sector activity will also be in focus. Market watchers will also be awaiting euro zone inflation data on survey data from the UK on manufacturing, service and construction sector activity. Technically market is under fresh buying as market has witnessed gain in open interest by 1.04% to settled at 5531 while prices up 0.55 rupee, now Zinc is getting support at 173.2 and below same could see a test of 172.4 level, And resistance is now likely to be seen at 174.8, a move above could see prices testing 175.6.
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Zinc on MCX settled up 0.32% at 173.95 tracking firmness from ShFE zinc was 1 percent higher as investors are positive on China and U.S. demand. Basemetals can see support after solid U.S. economic data gave the Fed the confidence to raise rates for the first time in a year. The central bank signalled three more increases next year from the previous projection of two. Mine closures, tight supplies and expectations of deficits have pushed zinc up in 2016. But stocks in exchange warehouses and elsewhere totalling nearly 2 million tonnes or about seven weeks of usage are potentially negative for zinc, as is the rebalancing of commodity indices in January. China’s zinc smelters are squeezed between severe tightness in concentrate supply and a decline in the growth of demand for zinc metal. The International Lead and Zinc Study Group recently released preliminary data for zinc in 2016, which revealed the global market for the refined metal in deficit from January to October of this year. In the week ahead, investors will be looking ahead to Friday’s U.S. employment report for December along with Wednesday’s minutes of the Fed’s December meeting. While US data on manufacturing and service sector activity will also be in focus. Market watchers will also be awaiting euro zone inflation data on survey data from the UK on manufacturing, service and construction sector activity. Technically market is under fresh buying as market has witnessed gain in open interest by 1.04% to settled at 5531 while prices up 0.55 rupee, now Zinc is getting support at 173.2 and below same could see a test of 172.4 level, And resistance is now likely to be seen at 174.8, a move above could see prices testing 175.6.
