Zinc Market Firms as LME Stocks Tighten and Seasonal Demand Supports Prices
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Zinc prices remained firm across major exchanges as low inventories and steady downstream demand supported the market. Seasonal restocking in China and persistent warehouse withdrawals at the LME reinforced bullish sentiment. While supply remains tight, analysts expect short-term consolidation with a slight upward bias if disruptions persist.
Key Highlights
- LME zinc 3-month contract steady at US $3,066.5/MT amid low stocks.
- SHFE zinc futures near ¥22,670/MT, supported by seasonal restocking.
- MCX zinc futures around ₹304.20/kg, reflecting firm domestic demand.
- LME inventories remain tight at ~34,900 tonnes, sustaining market strength.
- Strong buying continues from galvanizing and alloy sectors in Asia.
- Technical range: Support ₹299/kg; Resistance ₹308/kg; Breakout above ₹312/kg.
Zinc Futures Hold Firm Across Global Exchanges Amid Tight Stocks
- LME: The LME 3-month zinc contract traded around US $3,066.5/MT, reflecting continued strength in the complex as visible stocks decline and physical demand remains firm.
- SHFE: Shanghai zinc futures were trading near ¥22,670/MT (front-month contracts), supported by steady domestic demand amid seasonal restocking.
- MCX: MCX zinc futures hovered around ₹304.20/kg, buoyed by tight global availability and sustained local demand.
Supply & Demand: LME Stocks Stay Low as Seasonal Restocking Boosts Activity
- LME Stocks: Visible LME zinc inventories remained tight, holding near 34,900 tonnes in early November.
- Market Activity: Ongoing withdrawals from LME warehouses and logistical redirection of metal to consumption hubs have kept supply constrained.
- In China, refined zinc output remains stable, though traders are closely monitoring concentrate inflows and treatment charge movements for potential short-term balance shifts.
Market News: Zinc Prices Rise on Supply Constraints and Strong Restocking
- LME zinc prices strengthened further as warehouse withdrawals persisted and visible stocks continued to decline.
- SHFE prices showed firm buying interest, driven by seasonal restocking in downstream galvanizing and alloy sectors.
- MCX zinc futures remained supported by tight global supply and import parity adjustments, prompting firm domestic bids.
- Analysts cautioned that any major smelter outage or shipping disruption could quickly tighten near-term availability and lift spot premiums.
Experts Opinion: Market Likely to Consolidate with Mild Upside Bias Near Term
- Support: ₹299.0/kg
- Resistance: ₹308.0/kg
- Breakout Level: Above ₹312.0/kg
Short-Term View:
With LME 3-month prices around US $3,066/MT and visible stocks remaining low, the market continues to lean toward supply tightness. OFB expects near-term consolidation with an upside bias, especially if warehouse withdrawals persist or any unplanned smelter outages occur.
Zinc Ingots
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