Zinc gains as China’s government promised to the stabilization of economy.

Zinc yesterday settled up by 0.47% at 223.5 as China’s government promised to consolidate the stabilization and recovery of the real estate market and boost the real estate industry. The World Bank has raised its expectations for China’s economic growth this year. Chinese Foreign Minister Wang Yi expressed willingness to strengthen strategic cooperation with Turkey. U.S. Treasury Department officials said they would take “targeted” actions against China, but emphasized that it was not decoupling.

New U.S. single-family home sales slipped in June after three straight months of gains, but the trend remained strong as a severe shortage of existing homes underpinned demand. Global refined supply is expected to increase by 1.9%, considering a low base year and as energy costs in Europe ease, while power curbs in China limit zinc smelter production. The global zinc market surplus slipped to 53,000 metric tons in May, down from 64,000 tons a month earlier, data from the International Lead and Zinc Study Group (ILZSG) showed. During the first five months of 2023, ILZSG data showed a surplus of 267,000 metric tons, versus a surplus of 189,000 tons in the same period of 2022.

Technically market is under short covering as the market has witnessed a drop in open interest by -4.68% to settle at 3525 while prices are up 1.05 rupees, now Zinc is getting support at 220.9 and below same could see a test of 218.1 levels, and resistance is now likely to be seen at 225.1, a move above could see prices testing 226.5.