Zinc Is Seen Trading At $2071 Up By $5
CommodityOnline | May 19, 2014 06:39AM ET
For the past two years, both zinc and lead have trended flat in a depressing period for commodities. It is very important for buyers to understand the current picture to be ready when buying opportunities finally show up. Zinc has remained between $2,200/t and $1,800/t for the past two and half years. Zinc is not showing real strength and we don’t see price risk in 2014. We recommend buyers not to worry about normal market fluctuations and don’t go long until zinc breaks above key levels. Buyers might want to be hedged when zinc breaks above $2,200 per metric ton. Courtesy: agmetalminer.com
As of Friday 3 month forward Zinc is seen trading at $2050+/MT up by 1.28% from its previous week’s close. We believe the commodity has the potential move higher. If we look at the inventory performance at LME, the global stocks have declined over 1% from 760125 tons to 751650 tons.
Overall, we believe the commodity may advance in the next week so we recommend buying from lower levels. However, as discussed the Indian rupee appreciation may not support the commodity to rise much in local market. This morning at LME, Zinc is seen trading at $2071 up by $5 from its previous close and as stated above the commodity has the potential to move higher which the quantum of gains could be less at the domestic market.
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