Gold Silver Reports — Technically Zinc market is under short covering as market has witnessed drop in open interest by 15.1% to settled at 4626 while prices up 1.6 rupees.
MCX Zinc is getting support at 156 and below same could see a test of 152 level, And resistance is now likely to be seen at 162, a move above could see prices testing 164.
Zinc on MCX settled up 1.02% at 158.4 after China reported stronger-than-anticipated exports and imports for May, suggesting the economy is holding up better than expected. China’s refined zinc output was 407,000 tonnes in May, down 1.5% on the month and 10.4% year-on-year.
Refined zinc production in the first five months of 2017 totaled 2.118 million tonnes, a drop of 3.6% year-on-year. Some zinc smelters undertook maintenance in May. This affected some 35,000 tonnes of zinc output. Some Chinese zinc smelters will undertake maintenance cycle in June, and will hurt zinc production.
About 15,000 tonnes of zinc output will be affected after maintenance at these smelters. Some zinc smelters that conducted maintenance in May have yet to resume production. Growth in China’s refined zinc output will be lower than expected in June.
Spot premiums in Shanghai expanded 60-100 yuan per tonne over July zinc on the Shanghai Futures Exchange (SHFE) on June 8 from June 7. Spot zinc supplies in the market tightened with consumption of imported zinc.
Also Investor optimism about the pace of U.S. interest rate hikes over the longer-term, however, has been pegged back recently, as investors question whether recent economic data has deterred the Federal Reserve from its view that two additional rate hikes this year are appropriate.
