MCX ZINC NEWS : 04.01.2017
Zinc on MCX settled down -1.03% at 172.15 reversing its gains after the U.S. dollar hit a 14-year high. China's economic growth could slow to 6.5 percent this year from about 6.7 percent in 2016, a government-run think tank said on Tuesday while suggesting that a one-off devaluation could help to stabilise the yuan currency. Glencore PLC has become the big focus of zinc traders and analysts by sitting on 500,000 tons of annual production it shut as the commodity markets busted back in 2015. Glencore’s shut-in supply accounts for about 4% of world production and may make up the entire shortfall in the zinc market these days. There are also signs that more than a year since Glencore and other miners made massive cutbacks, the market is still getting tighter. Consumers in big developing markets such as India and China are demanding higher-quality cars that use materials made with zinc. Cancelled warrants were 4,700 tonnes higher at 110,850 tonnes due to freshly cancelled material in New Orleans – on-warrant availability is now at a multi-year low. Index rebalancing may cause headwinds for the metal – index trading is typically price-insensitive, with trading usually occurring at the closing/settlement price of the day. Price moves can therefore be exaggerated during this period and can often provide attractive trading opportunities. Technically market is under long liquidation as market has witnessed drop in open interest by -6.49% to settled at 5172 while prices down -1.8 rupee, now Zinc is getting support at 170.6 and below same could see a test of 169 level, And resistance is now likely to be seen at 174.8, a move above could see prices testing 177.4.
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Zinc on MCX settled down -1.03% at 172.15 reversing its gains after the U.S. dollar hit a 14-year high. China's economic growth could slow to 6.5 percent this year from about 6.7 percent in 2016, a government-run think tank said on Tuesday while suggesting that a one-off devaluation could help to stabilise the yuan currency. Glencore PLC has become the big focus of zinc traders and analysts by sitting on 500,000 tons of annual production it shut as the commodity markets busted back in 2015. Glencore’s shut-in supply accounts for about 4% of world production and may make up the entire shortfall in the zinc market these days. There are also signs that more than a year since Glencore and other miners made massive cutbacks, the market is still getting tighter. Consumers in big developing markets such as India and China are demanding higher-quality cars that use materials made with zinc. Cancelled warrants were 4,700 tonnes higher at 110,850 tonnes due to freshly cancelled material in New Orleans – on-warrant availability is now at a multi-year low. Index rebalancing may cause headwinds for the metal – index trading is typically price-insensitive, with trading usually occurring at the closing/settlement price of the day. Price moves can therefore be exaggerated during this period and can often provide attractive trading opportunities. Technically market is under long liquidation as market has witnessed drop in open interest by -6.49% to settled at 5172 while prices down -1.8 rupee, now Zinc is getting support at 170.6 and below same could see a test of 169 level, And resistance is now likely to be seen at 174.8, a move above could see prices testing 177.4.
