Base Metal Zinc - Zinc futures tumbled by 2 per cent in the domestic market on Wednesday as investors and speculators exited positions in the industrial metal amidst weak physical demand for zinc in the domestic spot market.
Further, manufacturing contractions in the US and China in November signaled a gloomy demand outlook for the metal. A strengthening dollar following Fed Chair Janet Yellen’s comments who saw the case for a December rate hike also curbed the appeal of industrial metals as an alternative asset.
Meanwhile, New York manufacturing activity growth slowed as the ISM New York index fell to 60.7 in November from 65.8 in October, with a reading above 50 signaling expansion, raising fears that a factory slowdown in the US may curb demand for industrial metals.Euro area consumer inflation remained stuck near zero in November, signaling weak demand in the 19-member economy. The consumer price index for the region climbed 0.1 per cent, year on year in November 2015.
At the MCX, Zinc futures for December 2015 contract closed at Rs 103.10 per kg, down by 2 per cent after opening at Rs 104.65, against the previous closing price of Rs 105.20. It touched the intra-day low of Rs 103.
Further, manufacturing contractions in the US and China in November signaled a gloomy demand outlook for the metal. A strengthening dollar following Fed Chair Janet Yellen’s comments who saw the case for a December rate hike also curbed the appeal of industrial metals as an alternative asset.
Meanwhile, New York manufacturing activity growth slowed as the ISM New York index fell to 60.7 in November from 65.8 in October, with a reading above 50 signaling expansion, raising fears that a factory slowdown in the US may curb demand for industrial metals.Euro area consumer inflation remained stuck near zero in November, signaling weak demand in the 19-member economy. The consumer price index for the region climbed 0.1 per cent, year on year in November 2015.
At the MCX, Zinc futures for December 2015 contract closed at Rs 103.10 per kg, down by 2 per cent after opening at Rs 104.65, against the previous closing price of Rs 105.20. It touched the intra-day low of Rs 103.
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