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Demand supply mismatch lifted domestic Zinc futures to new all-time highs. Production curbs from China due to environmental reasons, supply disruptions in zinc concentrate and a recovery in consumption continue to support the metal.

Global Economy

• Worries of tapering stimulus measure from major economies and weak China economic data pressured global equities last week. Global equity indices showed mixed signals. Key equity indices in Europe, America’s Dow Jones Industrial Average and S&P 500 closed lower ahead of US Federal Reserve policy gathering this week.

• China’s Industrial output eased to 5.3% in August from 6.4% in July. While retail sales growth slowed significantly on fresh virus outbreaks and supply disruptions.

• US Inflation growth slowed to 0.3% in August , Whereas Annual inflation increased 5.3% from a year earlier and 0.3% from July. • US Retail sales unexpectedly increased 0.7% in August, while core retail sales surged by 2.5%.

Zinc

• LME Zinc closed lower and finally settled at 3088 per MT last week. Meanwhile, SHFE Zinc made handsome gains by more than 2.00 percent.

• In MCX, Zinc near month future contract gained near to half a percent.

• Inventories of Zinc on LME and SHFE registered warehouses decreased.

Outlook : Prices continue to be volatile with mild positive bias. Though there are chances of higher level profit booking, supply disruptions and higher demand continue to support the metal.

LME: Prices required to break and sustain above $3200 to continue positive outlook. Else, there are chances of corrective selling in near term.

MCX: While prices stay above 252 there are chances of rallies to continue in near term. Otherwise corrective selling pressure is on cards.

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