Zinc fundamentals may not be bright as International Lead and Zinc Study Group (ILZG) has forecasted a small decline in world demand for refined zinc metal in 2012 at 12.71 mn tons while in 2013 it may rise 3.8% to 13.9 mn tons.
Global zinc mine output is forecast to increase by 5% in 2012 to 13.60 million tonnes and a further 2.7% in 2013 to 13.96 million tonnes.
Technical charts (below) show zinc is witnessing a rebound from lows recently rising to $1921.50 per ton levels and having solid support at $1790 and immediate support at $1860 levels. The charts show two W-shape bottoms signaling a positive move upwards in the near future. On the other hand, on MCX MCX Zinc December chart above is showing a V-Shaped recovery and ascending triangle formation in the charts paving the way for further upside moves.
3LME Zinc settlement price fell to $1907 from a recent high of $1907 but inventory fell by 2825 tons on Thursday trading.
Meanwhile, news reports said that China State Reserve Bureau has issued a tender on Thursday to buy 100,000 mt of refined zinc from domestic smelters to shore up prices. The stockpiling activity is expected to provide firm support to zinc prices.