FREE COMMODITY ZINC NEWS 02-01-17
Zinc on MCX settled up 1.43% at 173.4 amid as receding worries about demand and expectations of tighter supplies. 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. On top of that, smelting capacity is going to rise, adding to the fierce competition for business that has been dragging down treatment
charges (TCs). Zinc TCs have been about 4,000-4,300 yuan in northern China, while the TCs in southern China, principally in the provinces of Hunan and Guangxi, were about 450 yuan lower, which means the smelters in that area face far greater pressure than those in northern Inner Mongolia, Metal Bulletin has learned. China imported about 1.6 million tonnes of zinc-in-concentrate in 2015, with 6.2 million tonnes of zinc production; against concentrate imports of 1.1 million tonnes with 5.8 million tonnes’ of metal output in 2014, which shows that China’s zinc output relies 75-80% on domestic zinc concentrates. Technically market is under fresh buying as market has witnessed gain in open interest by 38.44% to settled at 5474 while prices up 2.45 rupee, now Zinc is getting support at 171.1 and below same could see a test of 168.8 level, And resistance is now likely to be seen at 175.9, a move above could see prices testing 178.4.
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charges (TCs). Zinc TCs have been about 4,000-4,300 yuan in northern China, while the TCs in southern China, principally in the provinces of Hunan and Guangxi, were about 450 yuan lower, which means the smelters in that area face far greater pressure than those in northern Inner Mongolia, Metal Bulletin has learned. China imported about 1.6 million tonnes of zinc-in-concentrate in 2015, with 6.2 million tonnes of zinc production; against concentrate imports of 1.1 million tonnes with 5.8 million tonnes’ of metal output in 2014, which shows that China’s zinc output relies 75-80% on domestic zinc concentrates. Technically market is under fresh buying as market has witnessed gain in open interest by 38.44% to settled at 5474 while prices up 2.45 rupee, now Zinc is getting support at 171.1 and below same could see a test of 168.8 level, And resistance is now likely to be seen at 175.9, a move above could see prices testing 178.4.
