Commodity Trading Tips for Zinc by KediaCommodity

ZincZinc yesterday traded with the negative node and settled -1.92% down at 99.65 as speculations of QE3 implementation decreased after US Labor Department announced the number of US jobless claims for the week 366,000, better than expectations. Building permits in the US jumped to four-year high in July and Philadelphia Federal manufacturing activity narrowed contraction in August compared with July, easing market risk aversion. German Chancellor Merkel’s promise to support the euro later in the day helped the euro to stage a strong rebound. Zinc remained in surplus during January-June 2012. The report from WBMS showed that World Zinc market was in surplus of 264000 tonnes in January-June 2012. The surplus for whole year ended 2011 was 551000 tonnes in whole year ending 2011. The increase in warehouse stocks was 139000 tonnes in the first six months of the year. Refined slab Zinc production was 1.07 million tonnes. World demand was 133000 tonnes lower than in the first six months of 2011. Chinese apparent demand was 2.59 million tonnes, which is just over 43 per cent of the global total. LME data also showed 22,700 tonnes of zinc being delivered into Johor in Malaysia, but traders said this was common near the LME's prompt date on the third Wednesday of the month. In yesterday's trading session zinc has touched the low of 99 after opening at 101.4, and finally settled at 99.65. For today's session market is looking to take support at 98.6, a break below could see a test of 97.6 and where as resistance is now likely to be seen at 101, a move above could see prices testing 102.4.

Trading Ideas:

Zinc trading range for the day is 97.62-102.42.

Zinc dropped as speculations of QE3 implementation decreased after US jobless claims came better than expectations

Global refined production fell by 2.4% and consumption fell by 2.2% compared with levels one year earlier.

WBMS showed that World Zinc market was in surplus of 264000 tonnes in January-June 2012