Zinc Tumbles On Demand Fears

Zinc futures plunged by more than 1 % t in the domestic market on Thursday as investors and speculators exited positions in the industrial metal amid weak physical demand for zinc from the domestic spot market.

 

Further, a gloomy demand outlook from China, the world’s biggest metals consumer, with China’s economy engulfed in the worst slowdown since the global financial crisis continued to mar sentiment.
 

Fears that policy tightening in the US may also impact demand for metals adversely from the world’s big economy also weighed on sentiment. The Fed on Wednesday signaled that it is getting ready to move to Get interest rates for the first time in almost a decade, and could do so as early as December.
 

Traders cast aside robust Euro area data which showed that a gauge measuring economic sentiment in the region soared to a four-year high at 105.9 in October.
 

At the MCX, Zinc futures for October 2015 contract closed at Rs 110.75 per 1 kg, down by 1.16 per cent after opening at Rs 112, against the previous closing price of Rs 112.05. It touched the intra-day low of Rs 110.6.

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