Zinc prices closed with a 0.22% rises, setting at 227.65, boosted by positive sentiment about Chinese policy support following a seasonal slowdown. A decrease in bank reserves in China, intended to infuse about $140 billion into the banking system, added to the metal’s upward trajectory.
The action is a part of China’s central bank or cabinet’s larger efforts to maintain investor confidence in the market. They have promised more effective measures, such as more medium- and long-term capital market fund injections.
The global zinc market shortfall increased, according to the International Lead or Zinc Study Group (ILZSG), from 62,500 metric tonnes in October 2023 to 71,600 metric tonnes in November 2023.
In contrast to an 86,000-ton shortfall during the same period in 2022. The data also showed a 211,000-ton surplus for the first 11 months of 2023. China’s refined zinc output reached 590,900 metric tonnes in December 2023, up 2.05% from the previous month and a strong 12.38% from the previous year.
The total quantity of refined zinc produced in the year was 6.622 million metric tonnes. A significant increase of 10.77% from the previous year. Furthermore, domestic production of zinc alloys increased by 9,600 metric tonnes month over month to reach 102,900 metric tonnes in December.
Technically speaking, the zinc market is showing signs of short-covering, as evidenced by a 1.7% decline in open interest that settled at 3232. There has been a 0.5 rupee price increase.
Support for zinc prices is found at 226.1, and there could be a test of 224.4 levels on the downside. Resistance is anticipat at 229.6 on the upside, and a breakthrough there may lead to a test of the 231.4 levels.