Zinc - Market trends and analysis

摘要

The medium term outlook for zinc is bullish both technically and fundamentally. In the shorter term, while stocks continue to fall and sentiment remains upbeat a sustained break above the important $2,140-2,150/ tonne resistance level is needed to trigger serious gains beyond the established trading range. Resilient Chinese imports so far this year have been supportive and no doubt account for much of the withdrawals from LME warehouses. However, cancelled warrants remain stuck in a downtrend, which means that the rate of outflows may continue to slow. This may correlate with a slowdown in Chinese import demand and a recovery in domestic production.