Zinc on MCX settled down -1.52% at 207.55 weighed
Zinc on MCX settled down -1.52% at 207.55 weighed by a stronger dollar and as traders locked in profits from the metals sharp rally in the previous session. The state’s only zinc mine is poised for reopening in the North Country by its Canadian owners to take advantage of a surge in global zinc prices. Titan Mining Corp., expects to resume mining next year at the St. Lawrence county mine, which has been closed since 2008. This month, the company attracted about $50 million in private investment on the Canadian stock exchange to support the venture. Pressure also seen as German industrial production fell in September after surging a month earlier, but output grew by 0.8 percent in the third quarter and is expected to increase further in the months ahead. Now market participants were also monitoring U.S. President Donald Trump’s Asian tour. Trump arrived in South Korea on Tuesday amid concerns Washington may resort to military action against its Northern neighbour. Also China’s top legislator said in a report to parliament on Wednesday the country needs to improve law enforcement and make polluters pay to treat billions of tonnes of rural, industrial and household waste. In the week ahead, investors will continue to monitor the progress of the U.S. tax reform bill in what will be relatively quiet week for economic data. Technically market is under long liquidation as market has witnessed drop in open interest by -6.16% to settled at 7131 while prices down -3.2 rupees, now Zinc is getting support at 206.2 and below same could see a test of 204.7 level, And resistance is now likely to be seen at 210.3, a move above could see prices testing 212.9.
# Zinc trading range for the day is 204.7-212.9.
# Zinc dropped as pressure seen after LME fell 2 percent to $3,166 which seen supported in recent sessions on supply worries.
# Zinc concentrate output posted slower-than-expected growth in 2017 due to environmental protection reason, and this constrained refined zinc output.
# Influenced by China’s new norm of economy and restriction of resources and environment, zinc industry will slowdown in growth.