MCX ZINC NEWS : 11.01.2017

MCX ZINC NEWS : 11.01.2017


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Zinc on MCX settled up 1.73% at 185.15 as support seen after the positive news that Chinese zinc and lead producer Yunnan Chihong said it planned to shut down several plants and take impairments on others hit by high operating costs and low profitability and that did not conform with China's supply-side reforms. Processing fees for China's zinc smelters reached record lows last month. Zinc hit a three-week peak on persistent supply shortages. Zinc closed up 2 percent at $2,720 a tonne, having earlier hit its highest level since Dec. 16 at $2,766. Yesterday U.S. dollar was little changed against a basket of major currencies on Tuesday on nervousness ahead of U.S. President-elect Donald Trump's first news conference set for Wednesday, while the Mexican peso hit a record low. Investors are cautious, however, ahead of U.S. President-elect Donald Trump's inauguration onJan 20. Also disruptions could come as soon as this week with a ban on ore exports from Indonesia set to come into effect, although miner Freeport is in talks with the government to continue exports as it constructs a new smelter. In wider markets, U.S. employment increased less than expected in December but a rebound in wages pointed to sustained job market momentum that sets up the economy for stronger growth and further interest rate increases from the Federal Reserve this year. In the week ahead, investors will be looking ahead to U.S. economic reports, particularly Friday’s retail sales figures for December. Technically market is under short covering as market has witnessed drop in open interest by -2.09% to settled at 6196, now Zinc is getting support at 182.6 and below same could see a test of 180.1 level, And resistance is now likely to be seen at 187.7, a move above could see prices testing 190.3.