Zinc prices experienced a decline, closing 0.28% lower at Rs 324.45, influenced by a robust U.S. dollar and increasing inventories in China that pressured the market. Stocks stored in facilities overseen by the Shanghai Futures Exchange increased by 9.2% since last Friday, thereby intensifying immediate price pressures. The dollar index has ascended past 100, bolstered by increased risk aversion in light of the ongoing U.S.–Iran conflict, which has introduced volatility into global financial markets.

Despite the downward pressure, losses were constrained owing to ongoing worries regarding tight supply and historically low inventories in certain areas. China, the world’s largest consumer of metals, has recently established its economic growth target for 2026 at 4.5%–5%, which is a modest decrease compared to the previous year’s rate. Authorities indicated that monetary policy will maintain flexibility, with possible adjustments to the reserve requirement ratio and interest rates to bolster economic activity.

Such measures may contribute to the stabilization of industrial demand. On the supply side, mine output has been experiencing a gradual recovery. Boliden’s Tara mine in Ireland has resumed operations following a suspension that began in mid-2023 due to subdued pricing conditions, while Ivanhoe Mines’ Kipushi project in the Democratic Republic of Congo is in the process of increasing its production levels.

From a technical standpoint, the market is experiencing long liquidation, as evidenced by a decline in open interest of 8.51% to 2,858 lots, accompanied by a price decrease of Rs 0.9. Immediate support is identified at Rs 323.4, with a breach of this threshold potentially driving prices down to Rs 322.4. On the upside, resistance is likely around Rs 325.5, with a move above this level potentially opening the door to Rs 326.6.