Zinc prices fell -1.98%, setting at 220.35, on worries regarding China’s economic growth and the US Federal Reserve’s delayed interest rate cuts.
China’s economic growth somewhat underperformed predictions due to concerning data from the real estate industry, such as a 23% decline in floor area-based property sales in December.
While there were indications of a boost in industrial output, other economic indications for the same period showed tepid growth in investments and slow growth in retail sales.
As per the report by the International Lead and Zinc Study Group (ILZSG), the global zinc market experienced a rise in deficit from 62,500 tonnes in October to 71,600 metric tonnes in November 2023.
In contrast to a shortage of 86,000 tonnes during the same period in 2022, the statistics for the first 11 months of 2023 revealed a surplus of 211,000 tonnes.
Speaking at the Global Economic Forum in Davos, Chinese Premier Li Qiang expressed optimism about the country’s economy, pointing to a recovery and upward trend and projecting growth of about 5.2% in 2023—above the official target of 5%.
Li highlighted the Chinese economy’s ability to weather ups and downs while maintaining a general trend of long-term growth.
Technically speaking, the zinc market saw a long liquidation, with open interest declining by -11.15% and ending at 2343.
Prices dropped by a total of -4.45 rupees. Zinc prices is currently finding support at 218.7, and if this level is broke, it could test 217. Resistance is seen at 223.3 on the upside, and a move above it could push prices as high as 226.2.