Zinc prices improved by almost 2% to Rs 83.30 per kg on MCX on fresh buying by traders in tandem with a firm trend in euro. Copper futures are steady to firm ahead of existing home sales data to be released in evening session. Copper prices trade above $6600 on LME supported by ICSG's report of copper deficit. International Copper Study Group (ICSG) reported that copper market was in deficit in March for the first time since September as production fell 113,000 metric tons below demand. The world refined-copper market was in deficit by 1,000 tons in the first quarter, compared with a year-earlier surplus of 139,000 tons. Copper prices fluctuated between gains and losses after China removed export rebates and the country's currency held gains against dollar. Rebates on some copper, zinc, lead, nickel and tin products such as tubes and wires will be removed from July 15, the Ministry of Finance said in a statement yesterday on its website. The tariff change, announced amid increasing trade complaints from the U.S. and the European Union, also affects steel products, of which China is the largest producer According to Reuter's news, China is considering raising processing standards for used lead-acid batteries, which may boost extraction rates and production of recycled lead. A higher production of refined lead in China could mean a supply rise for the world market given the country is the world's top producer of the metal, a factor that affects London Metal Exchange prices. Traders are waiting for the release of May existing home sales from US, to be announced at 19.30. The Federal Open Market Committee begins its two-day policy meeting Tuesday. The FOMC is widely expected to keep the federal-funds target hovering near zero percent. Technical View Copper prices facing resistance near 305 level with support at 300. Nickel prices may see some more gains above 920 level, while support at 900 level. Zinc and lead looks strong in metals having resistance at 83.50 in zinc and 84.50 in lead.

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