Commodities Buzz: MCX Zinc Slides Sharply on Monday

Indian Zinc prices were sliding sharply in the session on Monday. The prices of Zinc on MCX was at Rs 197.85 per kg, down 1.7%. The prices tested a high of Rs 201.3 per kg, and a low of Rs 200 per kg.

International Lead and Zinc Study Group (ILZSG) mentioned that zinc market was in surplus by 143kt during January to April 2018 which compares with a deficit of 486kt recorded in the whole of the previous year. Reported stocks rose by 90ktduring January to April with a net increase in Shanghai of 39 kt over the period. LME stocks rose by 79.4 kt and 24.5 kt respectively in March and April closing at 237.3 kt which compares with 181 kt at the end of 2017. LME stocks represent 31per cent of the global total with the bulk of the metal held in US warehouses.April trade data for China is not available for technical reasons.

Global refined production rose by 1.3 per cent and consumption was 5.3per cent lower than the levels recorded one year earlier. Japanese apparent demand was, at 170.1kt,3.1 per cent above the equivalent total for January to April 2017. The March figure was higher than usual due to a decline of 9.3 kt in producer stocks at the end of the Japanese fiscal year.

World demand was 243 kt lower than for January to April 2017. Chinese apparent demand was 1950.8kt which is just under 45 per cent of the global total. In April 2018 slab zinc production was 1123.6 kt and consumption 1071.5kt.