Zinc was also no exception either as the commodity broadly declined along with the other commodities at the LME platform to close at $2045.50/MT mark.
Broadly zinc stock piles have been declining. However the positivism on the inventory front is being negated by the cancelled warrants. Zinc cancelled warrants ratio of zinc declined from 519725 MT to 293,000 MT indicating lack of immediate requirement for the metal.
We are recommending selling in Zinc on a purely technical basis. However we are bullish on the commodity in the medium term as zinc is one of the few commodities among the metals pack along with lead which is better placed in terms of positive fundamentals of demand and supply where in the metal is in deficit of 18,000 tons for the period of January 2013 till November 2013 according to the ILZSG which is adding strength to our medium term bullishness on zinc.