ZOID RESEARCH 12- MAY-2014 :ZINC

As of 9th May 2014, Zinc commodity has been trading steady for this whole year with a marginal change over 1% from its previous year’s close. We believe the commodity has been steady as the demand and supply for the metal is sluggish in the first quarter of 2014 while Chinese numbers are also coming disappointing where in it is also becoming difficult in anticipating its future demand. We believe the commodity may remain undertone while Chinese economic status would decide the commodity’s price performance. As we have been seeing the economic data coming poor in China is mostly hurting all the metals so its impact is also noticed on Zinc. China is one of the largest consumers of Zinc in the world. From the inventory front, in the last week only 5000 tons of stocks have been moved from LME i.e. from 767800 tons to 762500 tons indicating market dynamics are still low hence the demand is sluggish for the metals. Also, there have been no changes in the spread between cash to LME forward prices of Zinc which is managing to trade in positive at $5 indicating near and short term demand for the metal is sluggish. Overall, we believe the commodity may remain sideways on today’s trading session.




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