ZINC

FUNDAMENTALS

Zinc traded volatile with some initial declines in the early trading hours of the session following increase in LME warehouse inventories.

The prices also weakened on WBMS recent release of zinc markets surplus during the first eight months.

The LME warehouse zinc inventories increased by 325 mt to aggregate 60,375 mt Thursday.  

Zinc market observed a surplus of 153,000 mt during January – August, according to the WBMS.

However zinc recovered its losses due to rally in crude oil prices and dollars record lows against the Euro.

Moreover, slight tentativeness appeared as   Boliden’s, Kokkola zinc mine employees submitted a strike notice.

TECHNICALS

Candlestick pattern is showing indecision. MACD is falling in negative zone showing bearish momentum in the market. The prices have closed below short and medium term EMA’s showing weakness in the market. Stochastic Oscillator is falling in neutral region indicating weakness, though RSI is indicating firmness. Zinc is most likely to trade volatile during the session.         

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