Zinc Cautious at MCX Support Despite LME Gains
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Zinc prices remain steady across exchanges, with LME trading near $2,770/mt and MCX at ₹264.10/kg. Inventories fell, but a global surplus is projected for 2025. Market sentiment stays cautious despite recent gains, with support seen at ₹263/kg and resistance near ₹266–268/kg. Supply disruptions remain the key upside risk.
Key Highlights
- Zinc Prices Hold Steady: LME at $2,769/mt; MCX at ₹264.10/kg.
- Inventories Decline: LME stocks down to 72,200 t, lowest this month.
- Global Surplus Ahead: ILZSG projects ~93,000 t surplus in 2025.
- Market Sentiment Cautious: Support at ₹263/kg; upside capped without disruptions.
LME and MCX Zinc Prices Hold Steady Near Support Levels
- LME (3-month cash): Latest at US $2,769/mt (Prev. close: $2,768.5). Today’s range: $2,766 – $2,776.5.
- Spot LME Zinc: $2,774.95/mt, +0.21% from the previous day.
- SHFE (China): Not fully available; last trend shows ~¥24,000–24,100/mt.
- MCX (India): Trading at ₹264.10/kg (flat). Open: ₹263.85; Prev. Close: ₹264.10.
Supply & Demand: Falling Inventories Contrast with 2025 Global Surplus Outlook
LME Inventory: 72,200 t (as of 19 Aug 2025), down from 75,850 t on 18 Aug.
ILZSG Outlook: Global market shifting to ~93,000 t surplus in 2025. Mine output +4.3% (~12.43 Mt), refined output +1.8% (~13.73 Mt), demand +1%.
Analysts Highlight Risks from Russian Mine Delays and Sanctions
- LME zinc prices rose ~5% this month amid Trafigura’s warehouse withdrawals.
- Despite low inventories, analysts say supply remains adequate; a surplus is still expected in 2025.
- Risks persist from Russian Ozernoye mine delays and sanctions, potentially affecting concentrate availability.
Market Outlook and Technical View
- Support: ₹263.0/kg
- Resistance: ₹266.0/kg
- Breakout: Above ₹268.0/kg
With MCX zinc at ₹264.10/kg sitting close to support market sentiment remains cautious. Upside may be capped unless fresh supply disruptions occur.
Zinc Ingots
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