Zinc News | Zinc Hit Both Predicted Levels. What’s Next?

Zinc News | Zinc Hit Both Predicted Levels. What's Next?

Zinc prices witnessed a meaningful recovery in the last three weeks as per the latest zinc news. Prices touched their highest levels in more than a month yesterday. In an anticipation of supply concerns after a fire hit a large Russian mine operation in the wake of recent mine suspensions.

A fire was extinguished on Wednesday at Russia’s Ozerny mining and processing plant and the company was assessing the possible impact on the planned start next year of full-scale operations at the country’s largest zinc deposit, a spokesperson said.

Nyrstar last week said it planned to close two U.S. zinc mines temporarily at the end of November because of weak prices and the impact of inflation – the third shutdown of zinc operations by producers in recent months as per the latest zinc news coming in.

Adding to supply concerns, LME zinc inventories have more than halved since early September.

In China’s spot market, the copper premium rallied on low stocks to stand at 335 yuan a ton on Tuesday, close to a two-month high touched in late October.

Apart from this, weakness in the U.S. dollar against its major counterparts also provides upward support for zinc prices. Fears of possible output cuts by zinc smelters in Yunnan due to power rationing also boosted zinc prices.

Zinc News | Technical Outlook

Zinc prices gained over 3% in the last three weeks. Prices enjoyed the recovery rally from the low 218.25 (1 November 2023), and made a high 230.10 yesterday. Today, it traded at 227.90, down 0.24%.

As per the outlook given on 12th October 2023, prices touched its both resistance levels 224.80-230. Remained above the support of 218-215.50.

On the above chart, prices found the support of 50% Fibonacci Retracement and breached 88.6% which is indicating further upside move and it could test the next resistance 232-234.00. That would be 200 SMA.

On the downside, crucial support will remain at 218.00-215.50, and any dip towards 222-220 will attract near term buying activities, unless it gives a closing below 218-215.50.

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