Zinc Market Outlook: A Steady Increase Seen Amid Supply Concerns
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Zinc prices have experienced a slight increase recently, supported by a weaker US dollar and improved consumption in the SHFE market. However, market sentiment remains cautious as traders await US Federal Reserve signals. The opening of the Kipushi mine in the DR Congo also took place.
Key Takeaways
- Price Trends: LME zinc prices increased to $2,966/mt; SHFE and MCX also saw gains, with SHFE up 0.67% and MCX at Rs 278.40/kg.
- Market Activity: LME inventory rose by 0.56% to 260,950 mt, while SHFE trading volume decreased.
- Supply & Demand: Slight improvement in consumption, supported by high spot premiums.
- Expert Outlook: Zinc prices may find support at Rs 275.20, with potential resistance at Rs 279.70. A break above could push prices higher.
Zinc Prices
- LME: As of yesterday, LME zinc opened at $2,956/mt, reaching a high of $2,987/mt and low of $2,941.5/mt, finally closing up at $2,966/mt, an increase of $3/mt or 0.1%. Today, LME Zinc trading commenced at 2,967/mt.
- SHFE: As of yesterday, the most-traded SHFE zinc 2412 contract opened at 24,750 yuan/mt, hitting a high of 25,255 yuan/mt and low of 24,730 yuan/mt, closed up at 24,860 yuan/mt, an increase of 165 yuan/mt or 0.67%. Today, SHFE Zinc trading commenced at 25,205 yuan/mt.
- MCX: As of yesterday, MCX Zinc prices opened at Rs 280/kg, reached the highest level of Rs 281.20, lowest level at Rs 277.70/kg and finally closed down at Rs 278.40/kg, an increase of 0.75 or 0.27%. Today, MCX Zinc trading will resume in the evening session.
Zinc Supply & Demand
- LME Opening Stock - 260950 | Live Warrants - 239075 | Cancelled Warrants - 21875
- LME: Trading volume dropped to 8,960 lots, with open interest down by 627 lots to 245,000. Zinc recorded its third consecutive gain, aided by a weaker US dollar, while inventories rose by 1,450 mt to 260,950 mt (+0.56%). Market sentiment remained cautious ahead of the US Fed’s interest rate signals, keeping prices range-bound.
- SHFE: Trading volume decreased to 49,733 lots, and open interest decreased by 1,526 lots to 95,220 lots. Overnight, the most-traded SHFE zinc 2412 contract recorded a bullish candlestick, with the 40-day moving average providing support below. On the fundamentals side, consumption slightly improved, and spot premiums remained high, providing some support for zinc prices.
Zinc News
- After more than 30 years of inactivity, the Kipushi mine in the Democratic Republic of Congo (DRC) has resumed operations. It was officially inaugurated on Sunday, November 17, 2024, by President Félix Tshisekedi.
- Korea Zinc Co.’s chairman is working to regain shareholders’ trust after being forced to scrap a $1.8 billion share sale last week, a setback in the bitter battle for control with the company’s top shareholder that he described as his “one real mistake.”
Expert Opinion
- In experts’ opinion, zinc finds support at Rs 275.20, with a break below potentially testing Rs 272.85. On the upside, resistance is seen at Rs 279.70, and a move above this level could push prices toward Rs 281.25.
Daily Market Report
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