Zinc futures steady at Rs 184.20 per kg in evening trade

Zinc prices were steady at Rs 184.20 per kg on August 3 as participants increased their long positions.

Base metals in international market traded mixed as the US Dollar Index turned choppy after testing 2018 lows last week. Some positive economic data is countering nervousness about rising coronavirus cases and increasing US-China tensions leading to choppiness in prices.

Prices on the London Metal Exchange (LME) rose by over 4 percent despite a rise in inventories. Zinc inventories rose by 71,525 tonne in the previous week to 188,175 tonne, the highest level since October 2018. However, inventories on the Shanghai Futures Exchange (SHFE) are down 8,100 tonne from March levels due to revival in industrial demand, thus spurring prices.

In the futures market, zinc for August delivery touched an intraday high of Rs 184.30 and a low of Rs 182.35 per kg on the Multi-Commodity Exchange (MCX). So far in the current series, the precious metal has touched a low of Rs 161.80 and a high of Rs 184.80.

Zinc futures for August delivery gained Rs 0.30, or 0.16 percent, to Rs 184.30 per kg at 18:17 hours on a business turnover of 2,772 lots. The same for September delivery slipped Rs 0.05, or 0.03 percent, to Rs 184.30 per kg on a turnover of nine lots.

The value of August and September contracts traded so far is Rs 590.90 crore and Rs 5.87 crore, respectively.

Zinc is expected to trade positively with support at Rs 182 and Rs 183 levels, according to Motilal Oswal. The brokerage firm advised its clients to buy on dips, targeting higher resistance at Rs 184.50-185.50.

At 12:50 (GMT), the base metal was marginally down 0.14 percent at $2,312 per tonne in London.