Zinc plummeted as Omicron variant would hamper global economic recovery


yesterday stabilized -1.15% to 279.15 as fears mounted that the spread of the Omicron coronavirus variant would hamper the global economic recovery. The variant first detected last month has so far been reported in at least 89 countries, although the severity of the disease it causes remains unclear. The Netherlands imposed restrictions to slow its spread and Germany was considering measures to contain the virus, raising fears that other countries would follow and curb economic activity. President Joe Biden’s $ 1.75 trillion domestic investment bill dealt a potentially fatal blow after a key senator said he would not back it.

Nyrstar’s Auby’s zinc operations will be placed under surveillance and maintenance from the first week of January 2022 in response to significantly higher current and future electricity prices in France, the company said. The global zinc market deficit fell to 6,100 tonnes in October, from a revised downward deficit of 38,400 tonnes a month earlier, according to data from the International Lead and Zinc Study Group (ILZSG). Previously, the ILZSG reported a deficit of 44,000 tonnes in September. In the first 10 months of 2021, ILZSG data showed a deficit of 93,000 tonnes compared to a surplus of 476,000 tonnes in the same period of 2020. About 13.5 million tonnes of zinc are produced and consumed each year.

Technically the market is under a long sell-off as the market saw open interest decline -13.33% to stand at 1431 while prices fell -3.25 rupees, now zinc is getting support at 276.6 and below it could see a test of 274.1 levels, and resistance should now be seen at 282, a move above could see price testing 284.9.

Business ideas:
# Zinc’s trading range for the day is 274.1-284.9.
# Zinc fell as fears mounted that the spread of the Omicron coronavirus variant would hamper the global economic recovery.
# Kazakh refined zinc production from January to November increased by 4.5% and 14.7% respectively
# President Joe Biden’s $ 1.75 trillion domestic investment bill dealt a potentially fatal blow after a key senator said he would not back it.