Zinc Weak, Selling Recommended For The Day

Published 01/09/2014, 05:31 AM
Zinc
Zinc was the another weak performer along with aluminum in the yesterday`s trading session at the LME platform.

The zinc inventories have been broadly declining over which has supported a decent rally in its prices. However the cancelled warrant ratio of the commodity has declined to 44.6% from a high of 56% witnessed during the month of November indicating lack of immediate requirement for the metal.

We have a sell view on the commodity for the day. However we hold a positive view on the commodity as zinc which was in supply surplus since last two- three years has turned into a deficit situation indicating healthy demand for the commodity in the medium term.

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