Zinc on MCX settled down -1.1% at 188.75 tracking weakness from LME Zinc which closed down by 0.6 percent at $2,830 as traders are eyeing for the China’s January trade data and informal financing, UK’s December industry and manufacturing output will be released today. China’s data are promising and will thus support commodities. Pressure also seen after the update that Europe’s largest zinc producer Nyrstar is considering restarting its idled and for sale Myra Falls zinc-copper mine in light of improved market conditions. Myra Falls in Canada is deemed a "high cost" operation by the company, and it was suspended in April 2015, along with Campo Morado, which was suspended in Q1 2015, and Middle Tennessee, which was suspended in December 2015. Myra Falls produces about 30,000 tpy of zinc-in-concentrate or 50,000 tpy of zinc concentrate. On its own, Myra Falls has a relatively limited output compared with the 248,000-tonne zinc market deficit predicted by the ILZSG, but the concept of bringing it back into action. While on contra Korea Zinc cuts refined zinc output by 7.7% for 2017 as TCs bite, Korea Zinc will reduce its annual refined zinc production by 7.7% this year, the world’s third-largest producer of the metal said today. The announcement comes as spot treatment charges have plummeted to multi-year lows. The company plans to produce 599,937 tonnes of zinc, 425,000 tonnes of lead and 2,116 tonnes of silver in 2017, down from 2016 levels of 650,000 tonnes, 428,124 tonnes and 2,424 tonnes. Technically market is under fresh selling as market has witnessed gain in open interest by 0.85% to settled at 7243, now Zinc is getting support at 187.6 and below same could see a test of 186.3 level, And resistance is now likely to be seen at 191, a move above could see prices testing 193.1.

Trading Ideas:

# Zinc trading range for the day is 186.3-193.1.

# Zinc prices dropped as traders are eyeing for the China’s January trade data and informal financing, UK’s December industry output

# Europe’s largest zinc producer Nyrstar is considering restarting its idled and for sale Myra Falls zinc-copper mine

# Korea Zinc cuts refined zinc output by 7.7% for 2017 as TCs bite