Buy Zinc AUG @ 393 SL 390 TGT 396-398. MCX - Kedia Advisory
ALUMINIUM
BUY ALUMINIUM AUG @ 345 SL 342 TGT 348-350. MCX
Observations
Aluminium trading range for the day is 343.1-352.5.
Aluminum gains amid all-time low overseas inventories, and expectations of supply disruptions from China's crackdown on illegal capacity.
Support also seen amid concerns that heavy rainfall and flooding in China's Sichuan province could disrupt smelter operations.
Output outside China fell 6.7% year-on-year in July, mainly due to reduced operating rates at several Middle Eastern smelters.
COPPER
BUY COPPER AUG @ 1370 SL 1362 TGT 1380-1390. MCX
Observations
Copper trading range for the day is 1353.3-1407.9.
Copper rallied after reports shows the Democratic Republic of Congo has banned exports of copper and cobalt concentrates.
China’s refined copper output grew by 2.5% year-on-year to nearly 1.334 million tonnes, reaching a new record high.
The premium for LME cash copper over the three-month contract widened to $130 a ton, the most since October, signalling tightening conditions.
ZINC
BUY ZINC AUG @ 393 SL 390 TGT 396-398. MCX
Observations
Zinc trading range for the day is 388-400.4.
Zinc gained as easing US Iran tensions lifted market risk appetite and LME available zinc stocks were at the lowest since December.
Cash LME zinc contract is trading roughly $60 a ton higher than the three-month forward, easing from more than a $73 premium a week ago.
Zinc smelter in Central China plans to carry out routine maintenance in August, affecting output by 1,000-1,500 mt.
