Zinc futures up 0.36% to Rs 195.15 per kg in evening trade

Zinc prices were trading firm at Rs 195.15 per kg on August 27 as participants increased their long positions.

Inventory at accredited wharehouses of the Shanghai Futures Exchange (SHFE) has declined in China. Inventory (on warrant), since April 1, has declined by 64 percent to 31,147 tonne. On the other hand, inventory in accredited warehouse of the London Metal Exchange (LHE) has increased by 341 percent to 215,320 tonne.

Abhishek Bansal, Founder Chairman, Abans Group, said, “It is the drawdown in the Chinese inventory that is keeping the rally in zinc going, along with positive sentiment in the base metals space."

In the futures market, zinc for September delivery touched an intraday high of Rs 196.40 and a low of Rs 193.55 per kg on the Multi-Commodity Exchange (MCX). So far in the current series, the precious metal has touched a low of Rs 181.25 and a high of Rs 199.90.

Zinc futures for September delivery gained Rs 0.7, or 0.36 percent, to Rs 195.15 per kg at 18:17 hours on a business turnover of 2,402 lots. The same for October delivery fell Rs 1.2, or 0.61 percent, to Rs 195.30 per kg on a turnover of 413 lots.

The value of September and October’s contracts traded so far is Rs 677.19 crore and Rs 4.89 crore, respectively.

"Zinc is expected to trade rangebound with support at Rs 193.5 and resistance at Rs 196.5 levels," according to Motilal Oswal.

At 12:51 (GMT), the base metal was up 0.45 percent at $2,485 per tonne in London.

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